Core banking options - how to future-proof Ultimately, no bank wants to keep replacing its core system. The existing one may have been in place for several decades and the new one, ideally, will also have a long lifespan. That means looking towards the new generation, with much more modern and flexible designs, rather than the traditional players. Tried and tested or next generation? At first glance, it might look like the trade-off is to go with either a core replacement that is narrow and modern or one that is broad, deep and ageing. However, if the former can move at an acceptable pace in terms of adding both breadth and depth, the user gains the best of both worlds. Important considerations are: • Does that supplier’s vision align with that of the bank; • Does it have strong banking domain knowledge; • Can its senior management articulate its core values and direction; • And how committed will it be to make a success of the implementation and build a long-lasting relationship? If, for instance, a current modern offering has the bulk of the retail banking functionality but is missing commercial lending, will the latter be available within an acceptable timescale? The implementation could start with retail banking, adding commercial lending at a later stage. A benefit to this approach is that the user can help to influence new functionality and the priority of what’s delivered. As one of a relatively small number of users, its voice will be much louder than if it selects a long-standing incumbent provider. Has the provider chosen any proprietary tools, for instance, that will tie the system to a particular cloud platform? Many of the old core systems ended up on obsolete technology platforms and databases. Is there this risk even with newer providers? Poor choices at the outset can mean that a system is too tightly tied to a particular technology stack. That sort of tech-savvy due diligence can also flow into questions about life after go-live. If the technical architecture is sound, then there should not be a need for the major upgrade projects of previous eras. The platforms should be able to be moved forward via small, incremental steps that are far more seamless than in the past in terms of testing and releasing new features. In a cloud native environment, this becomes standard practice, with all new functionality made available to all users at the same time. This in turn brings reduced maintenance and support overheads and economies of scale, resulting in a cost-benefit for customers as well. Subscribe for more insights https://lnkd.in/d94JgWBU Source Tuum #corebanking #banking #fintech
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#Banks globally have seen record profits over the past two years, what will 2025 look like for the sector? And how should #financialservices firms respond to narrowing net interest margins? Check out some of the key takeaways from our #bankingpredictions2025 report! #digitalbanking #conversationalAI #payments #bankingproducts
✨ Our 2025 banking predictions are live! In 2025, a double whammy of continued decline in customer experience quality and worsening profitability will hit banks. Banking executives must double down on product and service innovation. In 2025, we foresee that: 👉 Conversational banking will finally take off. 2025 will be a breakthrough year for conversational banking: Leaders will use AI capabilities to make their in-app bots smarter and more useful to customers. Features such as helping customers navigate the app, providing assistance, and offering personalized financial guidance will become more common. Banks will need to design their conversational assistants well, implement AI governance, and invest in rearchitecting their conversational AI systems to mitigate implementation risks. 👉 Deposit innovation will emerge, by way of “save now, pay later.” The adoption of “save now, pay later” (SNPL), also known as “save now, buy later,” has been growing in countries like India, offering customers an alternative way to earn returns on their savings. Its uptake in Western markets has been limited so far, however. We anticipate that Klarna’s new SNPL offering will inspire other companies with robust merchant ecosystems to introduce SNPL options in Western markets. With intense competition for customers’ savings, banks must innovate and explore new solutions to provide economic value. Failing to do so could lead to being left behind, as we’ve seen with the “buy now, pay later” trend. 👉 Real-time processing will become the norm but won’t drive innovation on its own. By 2025, real-time processing will be the default worldwide for financial transactions such as payments, funding, open banking, fraud assessment, and cross-border money movement, but its widespread adoption won’t immediately lead to innovative products and CX improvements. Financial institutions need to prioritize the development of value-added products and services on top of real-time infrastructure to meet customer expectations, gain a competitive edge, and shape the future of real-time processing. 📄 Read our full Predictions 2025: Banking report to get more detail about each of these predictions and read additional predictions. 🔗 (client access required): https://lnkd.in/dcA7zPPn 🎁 If you aren’t yet a client, you can download our complimentary Predictions guides, which cover more of our top predictions for 2025. Get additional complimentary resources, including webinars, on the Predictions 2025 hub. 🔗 https://lnkd.in/dDAaWf7w Set up a Forrester inquiry or guidance session to discuss these predictions or plan out your 2025 strategy. #financialservices #digitalbanking #banking #CX #innovation #forresterpredictions2025
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Fascinating takeaways from this new #banking study from Cornerstone Advisors. 💡 Ron Shevlin's last point, in particular, is how we built our CXM platform - to address these urgent needs! ✅ Better connections to third-party apps (and provider platforms!) ✅ Executives needing more visibility and analysis into customer activity and trends. (it should include ecosystem partners, too) ✅ Turbocharged intelligence and tools from emerging #AI. (And the flexibility to swap in/out the best AI models for different uses!) We've worked with financial institutions & payment providers for a long time - we see the power of ecosystem connections and full visibility to transform operations. We get it! To learn more about how we help complex industries manage CX and service governance, visit 👉🏽 OvationCXM.com #finserv #banks #data #technology #customerexperience
The 2024 Digital Banking Performance Metrics study from Cornerstone Advisors, commissioned by Alkami Technology, is live! Some of the highlights: 1️⃣ 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 For the second straight year, digital spending has nearly doubled. With the current focus on cost containment and reduction, it might be surprising to see this increase. 2️⃣ 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 One measure of digital productivity is the number of users supported by digital channel staff. That metric dropped 50% between 2021 and 2023. 3️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 Despite the heavy investment banks have made in opening checking accounts digitally, the % of new accounts opened in digital channels has dropped for the second straight year. 4️⃣ 𝗕𝗶𝗹𝗹 𝗣𝗮𝘆 For years, younger consumers have shunned using banks to pay their bills online, but even among consumers that do, the average number of bills paid through the banks is declining. 5️⃣ 𝗣𝟮𝗣 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 Only about one in 10 digital banking users makes P2P payments through their bank’s digital banking app. Among them, most banks saw just 1.5 P2P transactions per month. 6️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗗𝗲𝗽𝗼𝘀𝗶𝘁 Despite the downward trend in the number of checks written, since 2021, consumer adoption of mobile deposit is up 50% and the number of checks deposited tripled. 7️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗮𝘆 Among the study participants that reported mobile payment usage, adoption grew from 22% to 34% year over year, with users making an average of five mobile payments per month. 8️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 The % of banks offering customer support through a chatbot grew from 8% in 2022 to 23% in 2023. What's going on with digital? ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗶𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗮 𝗰𝗵𝗮𝗻𝗻𝗲𝗹. "Digital" is no longer strictly about customer access and support—increasingly they’re about internal productivity improvement. This causes budgeting and prioritization issues in a lot of FIs. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗿𝗲 𝗹𝗮𝗰𝗸𝗶𝗻𝗴. Fintechs and digital banks dominate new checking account openings—not because they’re digital, but because they offer a better digital product. Banks need to reinvent—or at least redesign—their core checking and payment accounts to meet consumers’ changing needs and expectations. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗔𝗜. Banks’ digital banking platforms have made huge improvements over the past 10 years, but need a new refresh to enable better integration with third-party applications, provide bank execs with better insights on user activity and trends, and integrate emerging AI-based tools and capabilities. For a complimentary copy of the 2024 Digital Banking Performance Metrics report, click here: https://lnkd.in/e8rmZsNM #banking #digital #digitalbanking
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The 2024 Digital Banking Performance Metrics study from Cornerstone Advisors, commissioned by Alkami Technology, is live! Some of the highlights: 1️⃣ 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 For the second straight year, digital spending has nearly doubled. With the current focus on cost containment and reduction, it might be surprising to see this increase. 2️⃣ 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 One measure of digital productivity is the number of users supported by digital channel staff. That metric dropped 50% between 2021 and 2023. 3️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 Despite the heavy investment banks have made in opening checking accounts digitally, the % of new accounts opened in digital channels has dropped for the second straight year. 4️⃣ 𝗕𝗶𝗹𝗹 𝗣𝗮𝘆 For years, younger consumers have shunned using banks to pay their bills online, but even among consumers that do, the average number of bills paid through the banks is declining. 5️⃣ 𝗣𝟮𝗣 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 Only about one in 10 digital banking users makes P2P payments through their bank’s digital banking app. Among them, most banks saw just 1.5 P2P transactions per month. 6️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗗𝗲𝗽𝗼𝘀𝗶𝘁 Despite the downward trend in the number of checks written, since 2021, consumer adoption of mobile deposit is up 50% and the number of checks deposited tripled. 7️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗮𝘆 Among the study participants that reported mobile payment usage, adoption grew from 22% to 34% year over year, with users making an average of five mobile payments per month. 8️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 The % of banks offering customer support through a chatbot grew from 8% in 2022 to 23% in 2023. What's going on with digital? ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗶𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗮 𝗰𝗵𝗮𝗻𝗻𝗲𝗹. "Digital" is no longer strictly about customer access and support—increasingly they’re about internal productivity improvement. This causes budgeting and prioritization issues in a lot of FIs. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗿𝗲 𝗹𝗮𝗰𝗸𝗶𝗻𝗴. Fintechs and digital banks dominate new checking account openings—not because they’re digital, but because they offer a better digital product. Banks need to reinvent—or at least redesign—their core checking and payment accounts to meet consumers’ changing needs and expectations. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗔𝗜. Banks’ digital banking platforms have made huge improvements over the past 10 years, but need a new refresh to enable better integration with third-party applications, provide bank execs with better insights on user activity and trends, and integrate emerging AI-based tools and capabilities. For a complimentary copy of the 2024 Digital Banking Performance Metrics report, click here: https://lnkd.in/e8rmZsNM #banking #digital #digitalbanking
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Outstanding report from Ron Shevlin and the team at Cornerstone Advisors. Further validates our own research, findings and experience in Global Financial Services and the six digital technology accelerators https://lnkd.in/e-7rH_wJ that are fueling performance to separate the leaders from the laggards! From the report: "Stronger business results can certainly contribute to superior digital banking results, but it is not always a direct relationship as will be seen throughout this report. While a bank’s or credit union’s financial success can help fund and drive investment in digital banking initiatives, the quality and effectiveness of those initiatives also depend on other factors. For example, an institution with strong financial performance may not necessarily have a well-designed and user-friendly digital banking platform. Conversely, a company with average financial performance may have a highly effective digital banking strategy that drives growth and improves customer experience. The success of digital banking initiatives also depends on factors such as the company's understanding of customer needs, its ability to innovate and keep up with technological advancements, and its ability to execute and effectively market digital banking services."
The 2024 Digital Banking Performance Metrics study from Cornerstone Advisors, commissioned by Alkami Technology, is live! Some of the highlights: 1️⃣ 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 For the second straight year, digital spending has nearly doubled. With the current focus on cost containment and reduction, it might be surprising to see this increase. 2️⃣ 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 One measure of digital productivity is the number of users supported by digital channel staff. That metric dropped 50% between 2021 and 2023. 3️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 Despite the heavy investment banks have made in opening checking accounts digitally, the % of new accounts opened in digital channels has dropped for the second straight year. 4️⃣ 𝗕𝗶𝗹𝗹 𝗣𝗮𝘆 For years, younger consumers have shunned using banks to pay their bills online, but even among consumers that do, the average number of bills paid through the banks is declining. 5️⃣ 𝗣𝟮𝗣 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 Only about one in 10 digital banking users makes P2P payments through their bank’s digital banking app. Among them, most banks saw just 1.5 P2P transactions per month. 6️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗗𝗲𝗽𝗼𝘀𝗶𝘁 Despite the downward trend in the number of checks written, since 2021, consumer adoption of mobile deposit is up 50% and the number of checks deposited tripled. 7️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗮𝘆 Among the study participants that reported mobile payment usage, adoption grew from 22% to 34% year over year, with users making an average of five mobile payments per month. 8️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 The % of banks offering customer support through a chatbot grew from 8% in 2022 to 23% in 2023. What's going on with digital? ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗶𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗮 𝗰𝗵𝗮𝗻𝗻𝗲𝗹. "Digital" is no longer strictly about customer access and support—increasingly they’re about internal productivity improvement. This causes budgeting and prioritization issues in a lot of FIs. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗿𝗲 𝗹𝗮𝗰𝗸𝗶𝗻𝗴. Fintechs and digital banks dominate new checking account openings—not because they’re digital, but because they offer a better digital product. Banks need to reinvent—or at least redesign—their core checking and payment accounts to meet consumers’ changing needs and expectations. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗔𝗜. Banks’ digital banking platforms have made huge improvements over the past 10 years, but need a new refresh to enable better integration with third-party applications, provide bank execs with better insights on user activity and trends, and integrate emerging AI-based tools and capabilities. For a complimentary copy of the 2024 Digital Banking Performance Metrics report, click here: https://lnkd.in/e8rmZsNM #banking #digital #digitalbanking
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✨ Our 2025 banking predictions are live! In 2025, a double whammy of continued decline in customer experience quality and worsening profitability will hit banks. Banking executives must double down on product and service innovation. In 2025, we foresee that: 👉 Conversational banking will finally take off. 2025 will be a breakthrough year for conversational banking: Leaders will use AI capabilities to make their in-app bots smarter and more useful to customers. Features such as helping customers navigate the app, providing assistance, and offering personalized financial guidance will become more common. Banks will need to design their conversational assistants well, implement AI governance, and invest in rearchitecting their conversational AI systems to mitigate implementation risks. 👉 Deposit innovation will emerge, by way of “save now, pay later.” The adoption of “save now, pay later” (SNPL), also known as “save now, buy later,” has been growing in countries like India, offering customers an alternative way to earn returns on their savings. Its uptake in Western markets has been limited so far, however. We anticipate that Klarna’s new SNPL offering will inspire other companies with robust merchant ecosystems to introduce SNPL options in Western markets. With intense competition for customers’ savings, banks must innovate and explore new solutions to provide economic value. Failing to do so could lead to being left behind, as we’ve seen with the “buy now, pay later” trend. 👉 Real-time processing will become the norm but won’t drive innovation on its own. By 2025, real-time processing will be the default worldwide for financial transactions such as payments, funding, open banking, fraud assessment, and cross-border money movement, but its widespread adoption won’t immediately lead to innovative products and CX improvements. Financial institutions need to prioritize the development of value-added products and services on top of real-time infrastructure to meet customer expectations, gain a competitive edge, and shape the future of real-time processing. 📄 Read our full Predictions 2025: Banking report to get more detail about each of these predictions and read additional predictions. 🔗 (client access required): https://lnkd.in/dcA7zPPn 🎁 If you aren’t yet a client, you can download our complimentary Predictions guides, which cover more of our top predictions for 2025. Get additional complimentary resources, including webinars, on the Predictions 2025 hub. 🔗 https://lnkd.in/dDAaWf7w Set up a Forrester inquiry or guidance session to discuss these predictions or plan out your 2025 strategy. #financialservices #digitalbanking #banking #CX #innovation #forresterpredictions2025
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Spending relatively more on digital does not necessarily make an FSI more effective; it could even be a sign of a less effective one. Even higher digital usage by consumers does not mean that an FSI is more effective, except for one metric: the average # of monthly P2P txns per active P2P user. https://lnkd.in/eqB-KN6D
The 2024 Digital Banking Performance Metrics study from Cornerstone Advisors, commissioned by Alkami Technology, is live! Some of the highlights: 1️⃣ 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 For the second straight year, digital spending has nearly doubled. With the current focus on cost containment and reduction, it might be surprising to see this increase. 2️⃣ 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 One measure of digital productivity is the number of users supported by digital channel staff. That metric dropped 50% between 2021 and 2023. 3️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 Despite the heavy investment banks have made in opening checking accounts digitally, the % of new accounts opened in digital channels has dropped for the second straight year. 4️⃣ 𝗕𝗶𝗹𝗹 𝗣𝗮𝘆 For years, younger consumers have shunned using banks to pay their bills online, but even among consumers that do, the average number of bills paid through the banks is declining. 5️⃣ 𝗣𝟮𝗣 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 Only about one in 10 digital banking users makes P2P payments through their bank’s digital banking app. Among them, most banks saw just 1.5 P2P transactions per month. 6️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗗𝗲𝗽𝗼𝘀𝗶𝘁 Despite the downward trend in the number of checks written, since 2021, consumer adoption of mobile deposit is up 50% and the number of checks deposited tripled. 7️⃣ 𝗠𝗼𝗯𝗶𝗹𝗲 𝗣𝗮𝘆 Among the study participants that reported mobile payment usage, adoption grew from 22% to 34% year over year, with users making an average of five mobile payments per month. 8️⃣ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 The % of banks offering customer support through a chatbot grew from 8% in 2022 to 23% in 2023. What's going on with digital? ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗶𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗮 𝗰𝗵𝗮𝗻𝗻𝗲𝗹. "Digital" is no longer strictly about customer access and support—increasingly they’re about internal productivity improvement. This causes budgeting and prioritization issues in a lot of FIs. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗿𝗲 𝗹𝗮𝗰𝗸𝗶𝗻𝗴. Fintechs and digital banks dominate new checking account openings—not because they’re digital, but because they offer a better digital product. Banks need to reinvent—or at least redesign—their core checking and payment accounts to meet consumers’ changing needs and expectations. ▶️ 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗔𝗜. Banks’ digital banking platforms have made huge improvements over the past 10 years, but need a new refresh to enable better integration with third-party applications, provide bank execs with better insights on user activity and trends, and integrate emerging AI-based tools and capabilities. For a complimentary copy of the 2024 Digital Banking Performance Metrics report, click here: https://lnkd.in/e8rmZsNM #banking #digital #digitalbanking
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The Impact of Technology on New Business Models in Banking 💡 In the past, the banking value chain was fully integrated and closed to external parties. This means that banks developed their own software, did not share data and only rarely collaborated with third parties on banking-related initiatives. The banking value chain will be transformed into a more open ecosystem where banks collaborate with third parties and distribute their services through new channels using innovative technologies. Banks that adapt will gain reach and new revenue streams, while third parties will gain access to previously closed banking services that they can integrate into new offerings. As regulated entities, banks will need to ensure regulatory compliance and client data security, which will require new investments. State-of-the-art IT infrastructure, efficient banking processes and synergies within the value chain will continue to be indispensable in the future. Some principles that will shape the banking business models: 🔹 The first principle is the increasing openness of the banking business. The future banking value chain will be more open and shaped by more parties than just banks. Opportunities will multiply when the bank’s services are offered to a larger number of partners. 🔹 The second principle is the nature of this openness. Collaboration between banks and third parties usually starts with data. Data sharing is also reciprocal – it is hard to imagine requesting data from a third party and at the same time refusing to share data with that third party. A bank that is already exchanging data with a third party will of course have the opportunity to cooperate in terms of services. We can identify 3 distinct business models: 👨💻 In an enriched in-house model, banks that wish to focus on better serving existing customers can become users of third-party data and services. They would position themselves in the user role, using technology provided by others. The degree of openness begins with the sourcing of data and continues with the use of services. 🤝 In a partnering model, banks that have a more advanced technology platform can share their technology with third parties, become their partners, and thus reach new clients. The degree of openness can start with data and continue through modular financial offerings in embedded finance to a full BaaS provider. 🌐 In an open model, banks may wish to distribute their services not only through partners, but also offer them to a broader set of potential clients. The relationship with B2B clients would shift from direct to indirect. This model could potentially have the greatest impact, depending on the reach of the marketplace. Source: Episode Six (E6) - https://bit.ly/46V4G0g #Fintech #Banking #OpenBanking #EmbeddedFinance #API #BaaS #FinancialServices #Payments #Loans #OpenData #Cloud #SaaS
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8 out of 10 consumers prefer full digital banking experience, yet some are left short-changed Onfido, an Entrust company, announced the results of the End-User Expectations of Digital Identity Report, exploring the growing preference among consumers for digital-first services – both online and in-person, and the non-negotiables of the user journey. The survey found that users have a strong appetite for digital services, with 81% saying they access services online daily. Specifically, more than 8 in 10 (82%) respondents access online banking services always or mostly online. Yet, in the last year, some have been prevented from doing so, with more than one in four (26%) banking customers unable to access online services, double the number of any other industry. The appetite for the digital banking experience is not confined to online services either. The survey finds that users seek the benefits of digital within in-person banking, too. In fact, 8 in 10 users would opt for digital processes that help speed up in-person services and waiting times. Digital vs. in-person service preferences During the COVID-19 pandemic, physical restrictions forced many businesses to meet users online, and in turn, they have become accustomed to digital-first environments. This is particularly true when it comes to setting up new accounts. Across industries, users are equally split between setting up accounts via an app (40%) and setting up accounts online (40%). But industries such as investment and trading (46%), gaming (44%) and banking (42%) are leading the way when it comes to app usage. End-users are more likely to choose a digital-first option to open a bank account, manage investments or make a money transfer. However, for services that might involve more considered decisions or financial advice, such as lending and mortgages, users are more inclined to want an in-store element in addition to online services. Over 2 in 5 (44%) said they prefer an in-store experience when signing up to lending platforms. However, there is a third preference for end-users: in-person services enhanced by digital processes. The research shows that users are embracing digital processes to speed up services in other industries, for example, to help them skip queues when checking into a hotel (82%) or renting a vehicle (76%). Banks and other financial institutions must now match these wider expectations for frictionless journeys, removing points of disruption, like a slow-moving line, if they are to boost user satisfaction. Download the End-User Expectations of Digital Identity Report here. https://lnkd.in/gApucySe Read More https://lnkd.in/gWv97jCy #End-User Expectations #Digital Identity Report #digital processes #digital banking #Entrust #Onfido #NetMon
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8 out of 10 consumers prefer full digital banking experience, yet some are left short-changed Onfido, an Entrust company, announced the results of the End-User Expectations of Digital Identity Report, exploring the growing preference among consumers for digital-first services – both online and in-person, and the non-negotiables of the user journey. The survey found that users have a strong appetite for digital services, with 81% saying they access services online daily. Specifically, more than 8 in 10 (82%) respondents access online banking services always or mostly online. Yet, in the last year, some have been prevented from doing so, with more than one in four (26%) banking customers unable to access online services, double the number of any other industry. The appetite for the digital banking experience is not confined to online services either. The survey finds that users seek the benefits of digital within in-person banking, too. In fact, 8 in 10 users would opt for digital processes that help speed up in-person services and waiting times. Digital vs. in-person service preferences During the COVID-19 pandemic, physical restrictions forced many businesses to meet users online, and in turn, they have become accustomed to digital-first environments. This is particularly true when it comes to setting up new accounts. Across industries, users are equally split between setting up accounts via an app (40%) and setting up accounts online (40%). But industries such as investment and trading (46%), gaming (44%) and banking (42%) are leading the way when it comes to app usage. End-users are more likely to choose a digital-first option to open a bank account, manage investments or make a money transfer. However, for services that might involve more considered decisions or financial advice, such as lending and mortgages, users are more inclined to want an in-store element in addition to online services. Over 2 in 5 (44%) said they prefer an in-store experience when signing up to lending platforms. However, there is a third preference for end-users: in-person services enhanced by digital processes. The research shows that users are embracing digital processes to speed up services in other industries, for example, to help them skip queues when checking into a hotel (82%) or renting a vehicle (76%). Banks and other financial institutions must now match these wider expectations for frictionless journeys, removing points of disruption, like a slow-moving line, if they are to boost user satisfaction. Download the End-User Expectations of Digital Identity Report here. https://lnkd.in/grDxKsrz Read More https://lnkd.in/g9GnaJDb #End-User Expectations #Digital Identity Report #digital processes #digital banking #Entrust #Onfido #NetMon
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Traditional Banks Go Digital as Neobanks Face Regulatory Heat As regulators draw a bead on neobanks, traditional financial institutions are acting more like neobanks. Open banking looks set to transform financial services in the United States, and the approach, in contrast to what has been seen in Europe, is market-driven rather than government-driven. A spate of announcements has served to highlight digital innovations that are changing the ways accounts can be opened and bundled with other offerings that go beyond direct deposit. In other words, the age-old practice of walking into branches to get onboarded into a bank’s client base or take advantage of new services added on to new accounts is becoming increasingly reliant on digital workflows. Back in October, the Consumer Financial Protection Bureau noted that its proposed open banking rule would make it easier to switch accounts, as consumers permission and control their data. Stage Set for More Digital Innovation The stage is seemingly set for individuals and businesses to establish more digitally based relationships with their financial institutions. As detailed in PYMNTS Intelligence’s most recent “How the World Does Digital” report, across 60,000 consumers studied in 2023 — a sample representative of about 800 million people living in 11 countries — 42% engage with online banking. A total of 46.8% do their banking through mobile means. About two-thirds of consumers used an app on their phone for banking (mobile banking, 68.6%) or from their desktop with a browser (online banking, 66.6%) at least monthly. Banks are examining and re-examining their tech stacks to more fully tap into instant payments, digital account openings and embedded finance, among other initiatives. In a panel discussion with PYMNTS in June, Galileo Head of Product Strategy Michael Haney said composable banking is “becoming an imperative to improve the operational efficiency at these legacy banks and be more responsive to client needs and industry trends.” The new generation of platforms is based on MACH principles: microservices, APIs, cloud and headless. As for some of the recent tech-driven initiatives, Bankjoy and Pinwheel partnered in April to help financial institutions offer their customers a frictionless way to set up their direct deposit. Via the collaboration, Bankjoy will help its bank and credit union clients integrate Pinwheel’s digital deposit switching solution. Last month, Mastercard said it would add new open banking-powered solutions that make it easier for consumers to automatically switch their direct deposits and update their recurring bill payments. These capabilities are expected to result from integrating Deposit Switch and Bill Pay Switch with Mastercard’s open banking platform and delivering these solutions in partnership with Atomic. News credit PYMNTS #news #fintech #fintechnews #finance #financenews #usdt #cryptootc
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10moSam Boboev, It's vital that the core banking system is aligned with the bank's long-term strategic goals. This alignment ensures that the chosen technology will support the bank's growth, adaptation to market changes and innovation ambitions without requiring frequent and costly replacements.