Tuesday, September 27, 2022

Fintech Solutions for Banks to Shape the Financial Ecosystem

Fintech Solutions for Banks

The financial technology (FinTech) ecosystem is witnessing a power shift, one never seen before in the financial sector. To maintain its growth, the industry must impose a strategic power on the sector by implementing the right solutions and insights into the banking sector to fulfill its growth ambitions by optimizing financial institutions’ guidance and support. Fintech solutions for banks deliver additional means to shape businesses without having to direct the focus toward substituting core banking systems.

Fintech banking solutions have been proven to be a reliable driver of growth, resulting in an exceedingly high investment rate. The implementation of fintech for banks – whether small or medium-sized – can be of immense benefit when considering building and running applications or projects that would guarantee a reliable flow of investment to the banking sector.

While the fintech industry is on an exponential rise, traditional global banks are not mirroring the same accelerated growth. For that purpose, the adoption and enrollment of digital incubators, optimizing investing, acquiring, and enhancing solutions for the recently risen start-up is deemed the groundwork for the financial sectors’ expansion.

As fintech and banking join forces, implementing the right fintech solutions for banks is the pillar that could either make or break the sector as the world accelerates its adoption of digital transformation. So, let’s take a deeper look at the latest fintech solutions that could shape the financial system’s evolution and future.

1. Account Opening Platform

One of the most critical aspects of a successful financial organization is new client acquisition—an omnichannel interface powered by an online account opening platform onboards new consumers swiftly and effortlessly. A robust account opening platform should also offer a configurable user interface, higher account conversion rates, and comprehensive reporting.

2. Open Banking Platform

Customers expect to be able to access their financial information through a variety of apps. Open banking systems make it simple for banks to safely share data with third-party businesses through an API that allows users to link their financial data. Open banking platforms are the vital link between your bank and popular apps such as peer-to-peer payments, financial management, and cryptocurrency investing.

3. BaaS Platform

You’ve seen that non-bank businesses are increasingly offering financial services. BaaS (banking as a service) platforms are driving this development. BaaS systems enable third-party companies to integrate digital banking or payment services directly into their offerings by integrating with a bank. This concept allows non-financial institutions to provide financial services without needing a banking license. Unlike open banking platforms, which share financial data from a bank account with a third-party company, BaaS platforms integrate all banking services into the product of a third-party company.

Summary

Banks are foremost money depositories — convenient places to store and receive cash, among the many services they provide. Banks and financial institutions are making wealth access more effortless than ever before, thanks to various ways to navigate the digital realm. These fintech solutions for banks are pushing banking into the digital era, from totally mobile banks and payments between friends to AI-enhanced chatbots and anti-money laundering software.


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