Banking as a Platform: Transforming Financial Services

• 26 September 2022
• Software development
• 0 Comments

Similarly, how should adherence to existing laws, whether related to disparate impact or unfair and deceptive practices, be observed with multiple parties involved? How should the responsibility of preserving customer privacy be allocated? https://globalcloudteam.com/ Answers to these questions may not be easy but should be addressed at the outset with regulators. As sharing of customer data between buyers and sellers is integral to platforms, new risks and privacy considerations become key.

Conveniently, a user can take a loan, act on payment requests, check account information and balance, take a look at spending dynamics and analytics, and finally invest in multiple products. He or she can also buy insurance or engage with their money in many other ways. Through digital wallets, for example, that are linked to cryptocurrency investments. A further benefit is that the developers of these platforms are continuously enhancing them in order to better cater to the evolving needs of their diverse user bases.

These insights also empower internal employees with data to drive sales and improve the customer support experience. This means your customers won’t need to schedule in-person appointments, fill out heavy paperwork and have longer wait times while corresponding with bank branch representatives. You can instead use guided steps, smart checklists, customizable workflows, and automated routing for faster processes conducted entirely online.

Finacle Online Banking

Without the right support, the comprehensiveness of your digital solution can add confusion to customer onboarding and adoption workflows. Alkami Platform is a holistic digital banking solution to help banks and credit unions acquire and retain relationships with retail and business customers. They’ve implemented new digital experiences across large credit unions like the Idaho Central Credit Union, with over 400,000 members.

Celeriti™ is DXC’s end-to-end suite of SOA-based enterprise software for banking, cards, payments and lending. Experience Studio enhances essential communications with data-driven content and marketing offers to create customer engagement and revenue opportunities. Bannois everything your institution needs to service users and deploy modern experiences across all your digital channels.

Attract more members with these credit union marketing strategies

Our solution provides complete payment and cash management capabilities empowering you to become an intelligent business enabler. It puts you in a faster payments ecosystem with real-time payment enablement and embedded fraud protection. Read why Aite Group recognizes Bottomline as a leading provider of U.S. cash management. Corillian Online from Fiserv provides banks and credit unions with a superior online banking experience that not only meets growing digital expectations of your customers but also drives value back to your bottom line. These models mean a bank can have a single platform that runs across multiple business segments, rather than a series of siloed business units.

78 percentof Americans who opt to do their banking digitally, then you might be familiar with managing financial processes from one or a combination of different applications. TrustBankCBS is a browser-based solution with core banking, e-banking, and branchless banking capabilities. StandFore FS integrated front-end platform for banking is an innovative approach to bank customer service. Mambu is a cloud platform designed to let user rapidly build, integrate, launch and service any lending portfolio into any market. Finacle Online Banking is an omnichannel enabled enterprise-class internet banking solution.

ways community banks and credit unions can level up with tech

Whatfix takes the guesswork out of digital transformation by helping you create in-app walkthoughs that guide your employees and customers as they’re navigating the digital banking platform. You can use Whatfix to address customer questions and prevent drop-offs with a suite of self-help features. The platform’s track record for success includes helping financial institutions worldwide increase the adoption of digital wallets and mobile banking apps. Their customers include the Australian Military Bank, DBS Hong Kong and the United Bank Africa. If you want to compare your product idea to the market, use our list to do so.

FIDOR Bank was launched back in 2010, with the motto of “banking mit freunden” which translates as “banking with friends”. They have also partnered with different companies for their APIs to improve the cashless experience. The integration with Plaid was rolled out within eight weeks, and it helped the Live Oak Bank to compete with national banks as well as the big multinational banks. This blog provides top 7 Banking as a Platform real life examples in detail.

Let’s look for answers by reviewing the evolution of banking over the past century. The bank developed a fidorOS platform to be more agile and flexible and ultimately achieve greater customer personalization. Its primary aim was to make banking a fun activity to improve customer engagement. These challenges mainly contained lack of API support for account configuration, lack of options to embed compliance, risk scoring, and risk assessment. The bank partnered with Plaid to address the two key issues, namely security and speed.

Platform-based models are defined by a ‘flat’ structure that facilitates the exchange of information between business units, customers and other third parties. Leveraging digital platforms enables banks to be more responsive to change by simplifying their processes without dumbing down capabilities. By connecting to BBVA’s core digital banking platform, third parties can access its APIs and specific financial service features including Move Money, Identity Verification, Account Origination, and Card Issuance.

How does platform-based banking work and what are the benefits to financial institutions?

The customer can compare products from multiple financial service providers in a single catalog. Finacle Digital Engagement Suite serves banks that want to provide their customers with multi-channel support for onboarding and engaging customers, selling products, and providing ongoing banking services. The platform creates experiences for bank customers, staff, and external partners, with solutions that cover core banking capabilities, trade finance, liquidity management, blockchain payments and more. As a typical model, BaaS will involve a Third Party Provider gaining access to a bank’s systems, which means the bank then allows the TPP to use its APIs to interact with customer data.

We provide customised products and services comprising ATM outsourcing and cash management, as well as online payment systems including payment provider for merchants, transaction processing services and mobile wallets. By working exclusively with community banks and credit unions, Kasasa is helping to strengthen local economies across the nation, building a virtuous cycle of keeping consumers’ dollars where they can do the most good. Our mission is to power a network of financial institutions in all 50 states offering products and services that are clearly beneficial for the consumer and the institutions offering them.

Take the Future Fitness Assessment:

Strength is no longer found in a singular value-added product , but rather in the value indirectly captured by the relationship between the service provider and service consumer. Open banking is gaining momentum worldwide with PSD2 , CMA , UPI and many similar initiatives being undertaken elsewhere. These regulations seek to open the financial sector to competition, stimulate innovation, reduce costs, increase transparency and empower consumers. On the technology side, they will need to update development approaches, pursue process automation, experiment with rapid prototyping and maintain the APIs themselves. All these ingredients ensure the right kind of environment — one where third parties can integrate and test their apps in a sandbox, and then easily move to production.

With digital banking as a platform , banks focus on their core functions, which are to deliver products, services and experiences while leveraging their infrastructure, platform and scale. The goal is to gain a foothold in the digital banking sector while reducing development time and cost, and to provide most products and services across a single portal for the customer. Third parties can provide various financial services to their customers by building on top of the existing regulated infrastructure of licensed banks. With baas providers, service providers can simply pick and mix from a range of financial products and then tailor them to the needs of their customers; in doing so, they can create new financial platforms of their own.

• Our solution provides complete payment and cash management capabilities empowering you to become an intelligent business enabler.
• Banking-as-a-platform enables the financial services industry to choose any and all of the platform’s offerings that fit their needs, with the ability to scale and adapt as their needs change.
• The majority of banks have limited their chatbots to their banking channels, i.e., internet banking, public websites and mobile applications.
• Digital banking platforms offer possibilities that are the same for everyone, but after logging in, highly personalized.
• Payments are executed at the tap of a button through mobile applications, and these applications are no longer limited to banks.
• Banks can no longer afford to merely design products and services that meet today’s customer needs; they must radically innovate and transform for the future.

But, knowing how financial institutions can actually benefit and extend the value of their digital offerings through Open Banking has been difficult to understand. Enable client banks to engage their customers with more timely, relevant and personalised experiences when it comes banking-as-a-platform to managing money. Not only because the market and competition demand it but also because there’s a potential in treating everyone the same. Unless a person falls into the category of private banking and has highly tailored personal service, everyone is perfectly the same.

Advertising & Marketing

It is important that digital banks be able to quickly adapt to changes in the world that may require them to have expanded features or bandwidth when disaster strikes, and Banking-as-a-platform allows for these types of quick responses. Digital banks are less subject to issues that affect physical banking, such as adverse weather or public health orders, which allows them to continue to run when physical banks might otherwise be closed. NCR Digital Insight is a suitable solution for banks looking to streamline digitization across their entire institution, from upgrading services at bank branches to introducing new automated features into ATMs. If you haven’t already, we recommend reading our post covering the basics of Open Banking and what it means for U.S.-based financial institutions. It’s a comprehensive set of cloud services, frameworks, and tools that allow you to create multi-channel experiences cross phones tablets and desktops. Built on advanced architecture, Finacle Core Banking Solution offers a comprehensive suite of capabilities to power your banks’ digital transformation.

You do not need to develop or own specific infrastructure – all you need is a brand and a business development team. In 2014, the Harvard Business Review asked if retail bank branches would survive in the digital world. They surmised that physical branch locations would still be an important component of a consumer’s overall banking experience. Banking as a Platform has far reaching implications for banks – including ability to reach out to a larger customer base, be privy to innovations, open up new revenue streams to name a few. Current satisfaction levels with existing chatbots are understandably lower than expected by banks.

Companies can integrate seamlessly with our existing back-office of banking service. This allows non-banks to easily and cost-effectively launch additional financial products and expand into additional markets. Another example is banks using the nCino platform to simplify loan origination. Some of our clients have been able to cut down the time needed to originate a loan from 75 to 30 days, due largely to the fact that nCino gives them a single tool with which to manage the entire process end-to-end. The platform also eliminates the need for clients to visit a branch when applying for a loan, enabling the kind of on-the-go service customers increasingly expect. With various Open Banking initiatives taking shape around the world, it is now more important than ever for banks to move away from the traditional vertically integrated business model.

Managing the risk between assets and liabilities became the fundamental banking code. Secure digital storage is replacing physical vaults and safe deposit boxes. Share certificates, stocks and other investments have become digital records. Payments are executed at the tap of a button through mobile applications, and these applications are no longer limited to banks. They are offered by fintechs, digital wallets and online payment systems like PayPal. We have even seen the emergence of peer to peer lending with the rise of startups like LendingClub, backed by Google.