Transformation of the financial services landscape

The transformation of the financial services landscape is already well underway. From a handful of banking brands, we have moved to a multitude of players offering financial, payment, and fintech solutions and apps, with an acceleration of their launches and upgrades.

Consumers, individuals, and businesses are regularly supplied with new products that democratize financial services and promise them more fluid, high-value-added experiences. These players quickly grasped consumers’ inclination for the convenience of digital tools and increased transparency.

Worldwide, the number of downloads of mobile financial applications is growing yearly. Europe is no exception to this trend.

 

User loyalty is waning

In the past, opening a bank account or paying with your very first card could be considered a rite of passage. The relationship between an institution and its customers is like a marriage. But today, customer loyalty is waning.

Today, a new application, payment solution, or SaaS subscription is just a click away. Users go for the most convenient and efficient experience.

As a result, they no longer hesitate to turn to another financial player, including a fintech. They no longer hesitate to diversify sources to find more flexibility, more advice, more investment opportunities, access a loan quickly and easily, or manage their business accounting.

According to Bain & Company, customer movement has nearly doubled since 2014. 40% of bank customers are considering “fragmenting,” meaning using another bank or non-bank player for a service, and this proportion is approaching 70% among the most affluent under 30.

 

The future of your business depends on digital services

Not surprisingly, the future of your business depends on digital services. The challenge can be summarized in two points:

• Create products that users will adopt without hesitation, with the shortest time-to-market.

• The ability to achieve this while respecting security and compliance rules is fundamental.

Just like retail brands, players in the banking, finance, or insurance sectors are subject to the logic of changing packaging or a new launch every six months! All sectors are facing and engaging in a permanent race for innovation.

 

Operate with peace of mind and focus on your core business

As we know, the administrative burden can quickly become a burden in the daily life of companies. It can slow down the pace of business development and the agility with which operations are conducted. The situation is similar for banking regulation.

From a technology management perspective, developing, integrating, administering, and monitoring the status of an API and its associated tools can quickly become complex, time-consuming, and expensive.

Not to mention testing, patching, or even the necessary evolutions at a regular pace.

Naturally, we seek to launch an innovation in the financial domain efficiently and agilely by relying on the ability to compose and recompose apps easily. Ideally, apps should automatically integrate PSD2 and GDPR-compliant account login. Customer enrollment and authentication funnels should be fully secure and optimized to drive conversions and user engagement.

When it comes to user logins to their financial information, they should ideally be uniquely supported. Multiple backup methods that ensure users can access their data are also essential requirements.

By delegating the heavier workloads that require specific capabilities, companies allow their staff to focus on their core business and business development strategy.

So why not have a partner with both regulatory and technological expertise?

 

Ready to boost your business with the power of Open Finance?