EXCLUSIVE – #Blockchain-based #rental payments platform #Rentberry is looking to raise $ 30 #million in an Initial Coin Offering (ICO) next month, Bank Innovation has learned. The ICO is set to take place on Nov. 30, Rentberry CEO Alex Lubinsky told Bank Innovation at Money 20/20 in Las Vegas. Based in California, Rentberry is a #home rental service that […]
Bank Innovation
EXCLUSIVE – Financial services-focused conversational AI company, #Clinc is contemplating a B2C #product, Clinc CEO and co-founder Jason Mars told Bank Innovation. Fresh after winning “Best in Show” at Bank AI a few weeks ago, Clinc announced at Money 20/20 in Las Vegas yesterday a new partnership with Turkey’s largest bank IsBank, to integrate its […]
Bank Innovation
EXCLUSIVE— With the help of APIs and other technologies, U.S. #banks are mastering the use and sharing of data, but the #next challenge is going to be even more technical. To move forward, financial institutions are going to have to take a closer look at the user experience, Eric Hazard, CEO for #fintech venture capital […]
Bank Innovation
EXCLUSIVE- #Health #Savings #Account #Startup, #Lively wants to be more than a HSA vehicle. Right now, more means giving its account holders the option to invest their HSA funds. Launched on March 1 this year, the company was started by two friends, Alex Cyriac, and Shobin Uralil, with the vision to help people manage their healthcare […]
Bank Innovation
While aesthetically pleasing, the distinctive V-shaped #flying #formation of migrating Canadian Geese is actually an efficiency measure. By flying in formation, the flock can be more aerodynamic and fly about 70 percent farther with the same amount of energy than if each goose flew alone. The thrust of one helps the others. With common direction and cooperation, they get to where they are going faster, easier and more efficiently.
It’s a concept that #banks and financial #technology (#fintech) companies should—and are—quickly learning.
Five years ago, industry watchers forecasted fintech to be the imminent and dramatic demise of traditional banking. It hasn’t happened, and in most geographies, the impact is being downgraded from a revolution to an evolution. Rather than displacing the incumbents, #fintechs are acting as a stimulus for incumbents to raise their game and develop better customer experiences—often in partnership with fintechs. The exceptions are markets where there were no incumbents. In China, the success of Ant Financial and Tencent is being driven at least to some degree by the lack of inertia in the banking system, and that digital technology has enabled a truly new experience rather than just a better alternative.
The picture is quite different in most mature markets. Volume migration from traditional to pure digital players continues to be in the low single digits in the US, while funding and regulatory hurdles are impeding challenger banks in the UK. Outside of a very few exceptions, like London-based TransferWise, no real killer apps that actually change the economics of banking have emerged in such markets, and many of those that show promise have been bought by incumbent banks. Reality is setting in that no matter how slick and well designed the customer experience is, conservative customers of incumbent banks need a more compelling reason to move their primary accounts.
Incumbent banks recognise that technology has the power to transform their business by making it more efficient, providing a better customer experience, and ultimately improving profit margins. Increasingly they are also recognising that flying in formation with smaller fintechs is more efficient than trying to always create their own solutions. By flying in formation, they can address the banking equivalent of air resistance like legacy system interfaces and regulatory compliance.
Likewise, fintechs are realising that flying alone can be energy sapping. In a rising rate environment in North America and Europe, some of operating cost advantages of fintechs are going to be offset by banks being able to keep their deposit costs rising slower than wholesale funding rates. As their cost advantage is eroded, fintechs may need to think about joining a banking formation to ensure that what they have that is distinctive and high value reaches the largest possible customer base. With the right partners, fintechs can explore new revenue streams, tap into different talent pools and access internal investment pools to evolve their products.
By combining their strengths under a common direction and in a strategic flying formation, banks and fintechs can deliver more compelling, hyper-relevant bank customer experiences quicker and easier than if both continue to fly alone.
To learn more, I invite you to read:
The post New “flying” formation for banks and fintechs appeared first on Accenture Banking Blog.
What is the #state of #banking #innovation today? Each year, we poll the industry to find out. #Fintech funding has grown tougher for startups, but #banks’ balance sheets are looking stronger– what does it mean for innovation? Talk has shifted from last year&8217;s discussions on #blockchain and chatbots to artificial intelligence and cloud-based cores. Many […]
Bank Innovation
EXCLUSIVE – E-money app, #deVere #Vault, today added the Australian dollar and 21 other #currencies to its growing repertoire of now 27 currencies, as the #fintech continues to expand its products and customers since its launch a few months ago. Among the other currencies added are the Canadian dollar, Chinese yuan, Japanese yen, Mexican peso, […]
Bank Innovation
EXCLUSIVE – #Bank of #Ireland #Global #Markets has teamed up with #fintech company WorldFirst to offer its U.S. based SME customers a foreign exchange and payments #service, under the brand &8211; Bank of Ireland Global Payments. The service is completely digital, Darsh Mariyappa, head of Bank of Ireland Global Markets U.S., told Bank Innovation. It […]
Bank Innovation
EXCLUSIVE – One thing is clear: more and more fintechs are looking to create better interaction to engage users. Besides the obvious social media channels, another social phenomenon which seems to be advancing is #gamification. One such #fintech is #Greenlight #Financial #Technology. The #startup was launched in January this year by Tim Sheehan, who formerly co-led […]
Bank Innovation
New York-based #fintech #Moven has just integrated artificial intelligence into its mobile apps, a feature that will make use of contextual conversation to better serve customers and their financial needs. The update will include “ChatUI,” a feature to be available within the app that answers customer questions in chat using artificial intelligence. ChatUI can also […]
Bank Innovation
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