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10 Features for Next-Gen Customer Experience in Digital Banking

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10 Features for Next-Gen Customer Experience in Digital Banking

In less than a year, the lives of people worldwide changed from digital second to digital-first. Physical restrictions led to a sharp surge in online activity and mass adoption of digital banking services. Safe, quick, and convenient access to finances online became a banking feature consumers would switch banks for. 

Mastercard’s study revealed that 62% of respondents in Europe expressed interest in moving from physical banking to digital platforms in 2020. Over half of the world’s population are using banking apps more than before the pandemic and express more positive interest in digital banking overall. 

As customers look for alternatives to traditional banking, first impressions stemming from customer experience play a big part in their decision-making. It won’t matter how good a bank’s in-branch customer service is or how attractive their fees are if a prospect can’t open an account because of a complicated and lengthy sign-up process. Currently, 9 out of 10 customers abandon applications for current accounts, credit cards, and loans. 

Digital banking research. Source: Temenos

Digital banking research. Source: Temenos

Next-gen customer acquisition in banking

By motivating customers to complete their applications with a better user experience, banks can increase revenue streams and improve the bottom line. According to a Capgemini report, customer acquisition in digital banking through meaningful user journeys was already a fast-growing priority before the pandemic because customers want to experience the same convenience in banking as they do in digital lifestyle applications. 

Key challenges of the current client onboarding process. Source: Capgemini

Key challenges of the current client onboarding process. Source: Capgemini

Designing the process from a user’s perspective is vital for not overloading customers with unnecessary information. Mobile-first experiences geared towards touchscreen input with the minimum information on-screen minimize distractions and improve chances of a successful conversion. Saving time and hassle by pre-filling as much as possible from internal systems and never asking for the same information twice goes a long way in nurturing leads. 

Banks need to use data and behavioural analytics to improve and iterate the customer acquisition process continuously. By identifying the friction points, where activities stall and errors occur, companies can make incremental changes to improve over time. 

A streamlined onboarding process lays the foundation for trustful client-bank relationships. Matching the ongoing customer journey with next-generation features helps to cement customer loyalty. Next-gen banking functionality can prevent the three most frequent sources of leaks in the digital sales cycle: switching is too difficult, the digital process is too cumbersome, and the lack of advice when customers need it. 

money managememt features

Top features for better customer experience in banking

1. Convenient account opening in minutes

Digital self-onboarding enables customers to open a bank account regardless of where they are and what device they use. Simplifying access to bank services and cutting time to open an account to mere minutes makes life easier for customers and removes switching barriers. 

Next-generation onboarding consists of collecting and validating basic information about a client, verifying provided documents, and performing due diligence to ensure adherence to legal aspects and regulations. This process can be completed in around five steps under 5 minutes by using remote ID verification services and Optical Character Recognition (OCR) to automate document verification and validation steps. 

According to OneSpan, digital account opening is already a top priority for banks and financial institutions, with 68% of respondents actively implementing it in their onboarding. Besides significantly improving customer experience, self-onboarding streamlines data collection and processing allowing banks to direct resources elsewhere.

Account opening transformation. Source: OneSpan

Account opening transformation. Source: OneSpan

2. Account-to-account payments

P2P or peer-to-peer payments is a simple yet effective solution that enables almost instant money transfers between any device. In just a few taps, customers can pay and send money to friends and family from their phone or computer. Mobile-first customers have little patience for multi-day bank transfers that don’t work on weekends when better and faster alternatives work 24/7/365. Banks that offer the convenience and simplicity of instant payments can keep their customers within their ecosystems instead of losing them to payment services like Venmo. 

3. Intuitive loan applications 

With an automated digital application process, customers can effortlessly open additional accounts, get credit cards, and apply for loans. The ability to instantly apply for any banking service in just a few clicks can improve conversion rates for existing and new financial products. Lending is a core banking service that can benefit greatly from a next-generation digital strategy. 

By integrating the loan application process with a core banking system, customers don’t need to input their data that already exists in the system. Clients can save and reopen their applications later, while banks can monitor these leads and follow up with help and personalized offers. 

4. Automated payments

Monthly and annual bills are recurring payments that take up time. Automating and providing management billing tools brings a new level of convenience to individuals and customers alike. By connecting billers directly to bank accounts or cards, banks can let customers centralize and control their spending using manual or scheduled bill payments. Quick access to all subscriptions with a real-time overview avoids unexpected charges and provides customers with peace of mind.

Like scheduled payments, bulk transfers enable account holders to send money to multiple beneficiaries from a single account. Business transactions, salaries, and any frequent payments can be streamlined to offer customers a fast, easy, and efficient way of handling bulk payments. 

5. Personal digital card management

Banks can give customers greater control over their finances with digital card management. Setting up online spending limits and blocking payment cards in a few taps provides greater comfort and a better sense of security. With digital card management, clients can personalize their settings to reflect their purchasing patterns by turning on/off contactless NFC and online payments. In-dept transaction history categorized by country, type, and merchant location help prevent irregularities and spot fraudulent transactions early. 

6. Trustworthy security

Digital banking services collect and store sensitive customer data that needs to be protected and kept secure with innovative technologies. To provide a next-generation customer experience, banks and financial institutions need to comply with strict regulatory data requirements and implement best industry practices. Biometric multi-factor authentications, location-based security, suspicious activity notifications, card tokenization, and predictive fraud detection systems are a must for a modern banking experience. 

7. Up-to-date notifications

In-app alerts and notifications let customers control their financial activities and protect against fraudulent withdrawals and transactions. Real-time notifications about incoming and outgoing payments, low balance warnings, overdraft protection warnings, and payment providers enable clients to stay on top of their finances. Every app alert is also an opportunity for banks to offer better products and services to their customers.  

8. Personal Finance Management (PFM)

Banks can play an active role in helping consumers improve their financial behaviour and make healthier money decisions. PFM tools and functionality enables customers to budget their finances with spending and saving goals. By monitoring weekly and monthly progress using clear visual charts, clients can choose to allocate a larger portion of their income to savings or retirement accounts. Banks that help consumers make better decisions can generate more trust and cultivate loyalty.

9. Valuable loyalty benefits

Customers feel valued when rewarded for their choices such as being a member of an exclusive banking community. Reward coupons, custom cards, special offers, cashback, and referral rewards are just some of the strategies digital banking platforms rely on to reward their customers for brand loyalty. Happy customers become the best brand ambassadors. 

10. Straightforward digital insurance

Partnerships and integrations between insurance companies and banks called bancassurance help financial institutions expand service offerings within their ecosystems. Personalized digital insurance packages that come with an account improve customer satisfaction while generating new revenue streams for banks. Insurance-linked to a bank account streamlines the claim resolution process and significantly speeds up refund time.

SDK.finance: the proven digital banking partner of choice 

SDK.financeSDK.finance new logo 2021, a white-label digital banking platform, has everything banks and financial institutions need to create a next-generation customer experience in the shortest time possible. The digital retail banking platform built by a team with 15+ years of experience in FinTech is available in all popular formats: web, iOS, and Android applications to reach the new generation of mobile-first customers. 

The platform is available in three formats:

Check out this demo video to learn more about the SDK.finance platform:

Contact the SDK.finance team directly to learn more about what type of banking software will be perfect for your business needs.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://sdk.finance/10-features-for-next-gen-customer-experience-in-digital-banking/

Fintech

Payhawk raises $20M to unify corporate cards, payments and expenses

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Fintech startup Payhawk has raised a $20 million funding round. QED Investors is leading the round with existing investor Earlybird Digital East also participating. Payhawk is building a unified system to manage all the money that is going in and out.

Essentially, companies switching to Payhawk can replace several services they already use and that didn’t interact well with each other. Payhawk lets you issue corporate cards for your employees, manage invoices and track payments from a single interface.

After signing up, customers get their own banking details with a dedicated IBAN. You can connect with your existing bank account, load funds to your Payhawk account and start using it in multiple ways.

Compared to other companies working on similar products, Payhawk gives each customer their own IBAN, which means they can receive third-party payments.

One of the key features of Payhawk is that customers can issue virtual and physical cards for employees with different rules. You can set up a team budget, configure an approval workflow for large transactions and let Payhawk handle receipt collection from those card transactions.

You can upload invoices to manage them through Payhawk. The startup tries to automatically extract data from those invoices for easier reconciliation. Payhawk also lets you reimburse employees. The service acts as a single source of truth for your company’s spending. Finally, you can connect Payhawk with your existing ERP system.

As a software-as-a-service solution, you pay a monthly subscription fee that will vary depending on optional features and the number of active cards. Clients include LuxAir, Lotto24, Viking Life, ATU, Gtmhub, MacPaw and By Miles. Overall, the startup has 200 clients.

The company has been growing nicely as revenue doubled in Q1 2021. It currently accepts clients in the European Union and the U.K. but it already plans to expand beyond those markets. Up next, Payhawk plans to launch credit cards, more currencies and tighter integration with corporate bank accounts.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/04/19/payhawk-raises-20-million-to-unify-corporate-cards-payments-and-expenses/

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DeFi Needs a More Reliable Credit Scoring System According to Blockchain Platform Ontology Founder Li Jun

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Decentralized finance (DeFi) requires a more reliable credit scoring system, however, we need to be cautious, according to Ontology (ONT) Founder, Li Jun.

Jun explains that credit scores have been “a cornerstone of risk evaluation in the global banking systems for decades.”

He adds that they allow banking institutions to determine who may qualify or is eligible to receive a loan, at what interest rate, and what the credit limits might be for an individual or business. Lenders use these scores to assess or evaluate the “likelihood that the borrower will fulfill their obligations and repay their loan,” Jun explained.

He also mentioned that the global lending and payments market managed to reach $6.7 trillion last year. It may be on track to reach $7.6 trillion this year, Jun revealed. He also noted that if you’ve applied for a bank loan, then you’ll know that these traditional credit-scoring systems and ID verification processes “work together.” He added that these include proof of address and a copy of a passport (or some other form of official identification).

Jun further noted that Europe’s Open Banking initiative, PSD2, is expected to streamline credit scoring. It will “make it possible for lenders and borrowers to access a full picture of an individual’s financial history in real-time,” Jun added while noting that its introduction into financial services systems will “revolutionize the loan process.” It will “increase speed, accuracy, and more importantly, financial inclusion,” Jun predicts.

He also mentioned:

“In comparison to this highly sophisticated system, lending and borrowing in the DeFi industry is still in its [early stages of development.] However, as we know, over the past 12 months it’s grown at an incredible rate. Total Value Locked (TVL) in DeFi as of March 2021 stands at $39.7 billion, according to DeFi Pulse. What’s more, it is lending that makes up for the largest segment of that market. The DeFi lending market sits at $17.8 billion. Decentralized exchanges follow closely behind at $15.6 billion.”

He continued:

“What the DeFi industry has been missing is a credit scoring system that provides a full picture of an individual’s varied crypto assets across different wallets and chains. To increase trust and reputation when it comes to lending and borrowing through DeFi, we need a system that supports cross-chain interaction and verifiable credentials. By connecting user identities with personal accounts, users can bind their digital assets and contact addresses making it easy for the correct due diligence to take place.”

Jun further noted that crypto credit scores will allow lenders to look at or review the borrower’s eligibility or creditworthiness. They should also help them with avoiding “over-collateralization when looking to borrow assets,” Jun explained while adding that they’ll “have the ability to put their positive credit scores to use and to access more rewarding opportunities.”

He also noted:

“As the DeFi industry progresses to merge with traditional financial systems, there will need to be an evaluation of on-chain and off-chain assets. To create a trusted merger between these two worlds, a full picture of traditional and digital holdings and history needs to be made available. This will further bolster the benefits of legislation like Europe’s PSD2. It will provide a more rounded, integrated look at asset holdings and histories, including crypto assets, in real-time.”

But he also pointed out that as we have now seen with any new technology that “deals with highly sensitive data, we must be cautious.”

He also mentioned that any decentralized credit scoring system “applied to DeFi lending and borrowing needs to put user privacy and security first.” Jun also believes we “cannot ask individuals to give up their data sovereignty in exchange for a well-working DeFi lending system.”

He added:

“Decentralized digital identity systems can help immensely here. By coupling decentralized credit scoring with a decentralized digital identity system, no one party will hold full control over an individual’s financial data. The buck will stop with the individual. The World Economic Forum has been promoting these kinds of digital identity solutions for a long time. In addition, the UK Government endorsed their use universally as the cornerstone of future economies.”

Jun concluded:

“If DeFi is serious about going mainstream and further nurturing relationships with institutional players, a reliable means for evaluating risk in a timely, accurate manner while permitting the same level of due diligence is integral. In addition, [if]the DeFi industry wants to win the trust of mainstream finance, it … [must] avoid the mistakes many disruptors in big tech have made in recent years.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/04/174368-defi-needs-a-more-reliable-credit-scoring-system-according-to-blockchain-platform-ontology-founder-li-jun/

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Australian FinTech company profile #122 – Unhedged

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1. Company Name: Unhedged

2. Website: www.unhedged.com.au

3. Key Staff & Titles: Peter Bakker – Founder & CEO, Mike Cohen – Co-Founder & COO, Glen VanBavinckhove – CTO, Jeremy Beasley – Growth, Jeremy Machet – Growth, and 6 others who are building like crazy

4. Location(s): Melbourne and Sydney

5. In one sentence, what does your fintech do?: Unhedged uses AI to deliver algorithmic returns to the everyday investor

6. How / why did you start your fintech company?: Being an Algotrader and working with rich people I got annoyed that these advanced tools were not available to my friends. When I looked up the returns of robo-investors I got really annoyed and thought: there must be a better way

7. What is the best thing your company has achieved or learnt along the way (this can include awards, capital raising etc)?: Raised 500K in 3 days which was faster then I ever raised before.

8. What’s some advice you’d give to an aspiring start-up?: Watch your cashflow: companies die of lack of cash, not lack of ideas

9. What’s next for your company? And are you looking to expand overseas or stay focussed on Australia?: Lauchinh the fund in April/May, a crowd fund raise in June and launching the retail product in July….

10. What other fintechs or companies do you admire?: Finserv (most stable earnings and growth), Blackrock: amazing money machine. Ellevest: a narrow target markets that works. CacheInvest: fundmanager as a service

11. What’s the most interesting or funniest moment that’s happened in your company’s lifetime?:
An investor transferring 100K without any documentation nor live fund (we returned the cash). We are still wondering how he knew where to transfer to.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/australian-fintech-company-profile-122-unhedged/

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Fintech

Mastercard to Acquire Digital Identity Specialist Ekata for $850 Million

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Mastercard’s announced $850 million acquisition of digital identity firm Ekata is a reminder that there is no way forward in digital commerce without a 21st century attitude toward issues of security and trust.

“The shift to a more digital world requires real solutions to secure every transaction and instill trust in every interaction,” Mastercard president of cyber and intelligence solutions Ajay Bhalla said. “With the addition of Ekata, we will advance our identity capabilities and create a safer, seamless way for consumers to prove who they say they are in the new digital economy.”

Seattle, Washington-based Ekata offers global identity verification to enable businesses around the world to link digital transactions to the people who make them. Via APIs and a SaaS tool, Ekata leverages data science and machine learning to help businesses detect fake accounts, cross-verify consumer data, reduce payment risk, and fight transaction fraud. With more than 2,000 corporate partners ranging from global merchants and financial institutions to marketplaces and digital currency platforms, Ekata enables its businesses to gain unique and valuable insights that allow them to make better risk decisions about their customers.

“The acceleration of online transactions has thrust global digital identity verification to the forefront as one of the biggest opportunities to build digital trust and combat global fraud,” Ekata CEO Rob Eleveld said. “The right identity verification solutions enable inclusive and frictionless experiences while, at the same time, ensuring customer privacy, control and security. Becoming part of the Mastercard Identity family ensures a broader, collective approach to meeting the growing demands of the digital economy.”

Founded in 2019, Ekata unveiled its merchant onboarding solution earlier this month. Designed to meet the needs of PSPs, B2B lenders, and marketplaces working with smaller, micro-merchants and sole proprietors, Ekata’s new platform automates the onboarding process via API and provides for more efficient manual review with a SaaS solution.

“Merchants today have plenty of options and will quickly turn to another payment service provider if an organization adds too much friction at onboarding or takes too long on approvals,” Ekata VP of Global Marketing Beth Shulkin said in a statement. “This is much more than a customer experience issue for PSPs and lenders; losing the lifetime value of a merchant has real bottom-line impact.”


Photo by Brooke Lewis from Pexels

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://finovate.com/mastercard-acquires-digital-identity-specialist-ekata-for-850-million/

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