5 Ways Banks Can Use FinTech to Build Trust, Support Customers

online-banking-advantagesBanks can use fintech to build trust, believe it not. When catering to a consumer base that expects nothing less than instant gratification, fintech companies, and partnerships can offer traditional banks tools that guarantee convenience and seamless customer service.

Wasteful and cumbersome, physical pieces of paper aren’t convenient and can challenge customer service for many in the banking institution. For that reason alone, many people refrain from using banks, expecting that it’ll be time-consuming –that’s on top of a preexisting distrust of the traditional banking system. However, banks are demonstrated that they’re interested in address distrust and negativity. They’re willing to take on public perception by using digital tools to move products that are customer-centric. They’re interested in doing a number of things in order to better satisfy the communities they service, and among those things are the following:

  1. Demonstrate that they’re customer-center: Since the birth of the banking industry, the focus has been on the products, but technology has offered an opportunity to focus on customers first and foremost. Through engagement via social media and other platforms, banks can inquire about customers’ specific needs, their desires, and concerns about wealth management. In order to do this, banks must be able to focus on internal data analytics, which fintech can assist with. Fintech has made data more comprehensive and palatable. It also eases customization, automation, and tailored bank offerings.
  2. Develop seamless banking systems: Among the numerous things fintech companies are able to do, they’re great at helping banks to implement solutions, which makes it easier for customers to access necessary services and they help with customer interaction with banks at every level. Ultimately this leads to greater satisfaction.
  3. Offer targeted service offerings: Data analytics are another specialty offered by fintech companies. They’re able to provide targeted insight, incentives, and opportunities to clients. Based on needs or desires of certain clients, companies can accurately suggest services or products after gauging after gauging requests made by clients in similar situations.
  4. Correct and address any concerns faced by the underbanked and unbanked: Fintech can be used to serve an important, overlooked segment: the underbanked and unbanked. Financial technology can equip banks with easy and inexpensive mechanisms to educate and equip customers, facilitating access to convenient options that make digital payment, mobile payment, and online banking possible for those in the U.S. and abroad.
  5. Broaden a prospective client base: Those banks with enough foresight to employ the expertise of fintech companies, they’ve gained access to a wider variety of customers. Fintech companies can provide low-cost insights on upscale and as well as those with lower net worth. Data analytics and robo-advisory advancements are making wealth management attainable. Incorporating fintech innovations into organizations will help banks to reach a greater collection of customers.

Fintech is easily improving the relationship between customers and banking institutions. Connectivity, convenience, and customer-specific interactions have emboldened the banking population.

Paymency, API-driven Platform for Banking, Delivers “Banking-As-A-Platform” Service to US

paymencylogo_transparentWhile numerous European startups have succeeded in transforming banks into app stores, only the California-based Paymency has managed to do the same in the U.S. According to the American Banker, the API-driven platform for finance and banking delivers “banking-as-a-platform” service to U.S. banks.

Paymency founder Gary Lewis Evans predicts that application program interfaces will power banking. With the use of APIs –known to ease the outsourced software app creation process when building for customers — users will benefit revolutionary impact that’s akin to the emergence of credit cards or internet banking.

“We are going to be an API-driven platform for finance and banking the way Amazon is a platform for retail,” said the fintech veteran, Lewis. “Banks will have the ability to interface easily with products and services and use it as a way to create a virtual bank and get out of the legacy branch structure.”

Banks will have access to Paymency’s edition of an an app store, where they’ll offer budgeting, mobile payments, personal financial budgeting, as well as services a tad more sophisticated (P-to-P lending, insurance, and investing). Numerous fintech companies and their partners will be able to offer up products in the store. What’s more, Paymency may seek out a bank charter, making it possible for nonbank entities (ex. Walmart) or digital bank startups to connect and offer their customer base full-scale banking services. Microsoft Azure cloud computing platform is used as the base technology for Paymency.

According to Lewis, the company soon plans to unveil its text-based mobile payments product and network Groovy Pay, which resembles Kenya’s M-Pesa mobile payments system.

“I describe it as something very similar to when Amazon first launched as a bookseller, and then they expanded their platform at a later date,” said Lewis, who co-founded Bofl Federal Bank, once known as Bank of Internet USA. “So we’re going to launch with mobile payments and build our base that way before expanding.”

With more than four decades of experience under his belt, Lewis has a long history of digital innovation. He spearheaded California’s early venture into internet banking in 1995 when he was serving as president of La Jolla Bank, which was one of the first in the nation to do so. Lewis left La Jolla Bank in 1996 to launch Bank of Internet USA, starting out in a computer center at the University of California-Santa Barbara. He stayed on as president until 2010, leaving to pursue his next project, Paymency.

A “soft launch” of Paymency with GroovyPay is expected within the next six months. Lewis believes it may take up to three years for Paymency’s app-store-like platform to be fully formed and formally launched. The API-based model provides more flexibility, with regards to services and products, making it far more attractive to banks. To do this the right way, Paymency will have to appeal to banks’ core vendors, and banks’ will require core systems that could facilitate API-based banking. Core vendors tend to wank banks to buy all or most of their ancillary products from them, rather than another party. However, many believe core vendors are becoming more flexible and more willing to under consumers’ attraction to API-powered banking.

Banks are also more drawn to the idea of partnering with outside firms, so they’re able to offer more services and products. These fintech partnerships are changing with the market, becoming more fluid and more dynamic, offering solutions and becoming provocative for the sake of expectant consumers. The API banking-as-a-platform services are natural progress, as that’s the way technology is moving. Technology is moving so rapidly, that this is API banking-as-a-platform services are fixed part of banking reality, according to Lewis.