By FintechOS - March 6, 2024
Navigating Embedded Finance: Profitable Strategies for Credit Unions and Regional Banks
Embedded finance is already shaking up financial services. How can regional banks and credit unions tap into this new opportunity?
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Retail Banking
Retail Banking Overview
Gain new customers by creating experiences and products quickly and easily
Account Opening
Create journeys powering customer acquisition
Personal Lending
Design and launch personalized products quickly to meet customer needs
Mortgage Automation
Build tailored mortgage offers to win new customers
Small Business Banking
Small Business Banking Overview
Grow your small business customer base
Account Opening
Engage and onboard small businesses using frictionless digital journeys
Small Business Lending
Create relevant loan products to meet the specific needs of different business segments
General Insurance
General Insurance
Meet the need for new forms of cover and high-quality digital experiences
Small Business Insurance
Create personalized propositions that meet the unique needs of small businesses
Pet Insurance
Increase share of wallet with cover customers love as much as their pets
Embedded Finance
BNPL and Embedded Lending
Deliver lending products directly to where they are needed
Resource Center
Get insights from the latest customer case studies, whitepapers, webinars, and more
Customer Case Studies
Learn what our global customers are saying about the value of FintechOS
Platform Documentation
Comprehensive documentation for the FintechOS platform including release notes, APIs, and SDKs
Innovation and the ability to offer more meaningful products and services have become key differentiators for financial institutions. Yet, innovation poses a significant challenge for FIs, especially concerning resource management and the time and cost to modernize legacy architecture.
Aite-Novarica Group’s Strategic Advisor of Commercial Banking & Payments, Gilles Ubaghs, and FintechOS’ VP of Product Marketing, Mike Hughes, sat down to explore the emerging concept of fintech enablement as a pragmatic solution to these universal challenges.
Here are the key takeaways from their conversation.
The financial services industry is undergoing a transformation as customer expectations shift and innovation becomes increasingly important. However, traditional strategies for innovation are often resource-intensive and leave organizations dependent on third-party providers. In order to meet these changing needs, core modernization is critical.
Financial services are facing a major shift in customer expectations, driven by advancements in technology and changing consumer habits. Customers now expect seamless and personalized experiences from financial institutions, making it more important than ever for FIs to invest in modernizing their infrastructure.
While core modernization is critical to keeping up with changing customer expectations, a full “rip and replace” approach can be resource-intensive and carry high levels of risk. This approach can lead to significant disruption for existing clients, as well as costly doubling of resources. Financial organizations must find a balance between modernization and stability without relying on a full replacement of their existing core infrastructure.
Technical debt accrues over time and eventually must be paid for, often at a great cost. Financial organizations must break the cycle of technical debt to keep pace with innovation, as the speed of innovation is only set to increase.
A fintech enablement platform is a technology infrastructure that acts as an operating system to enable rapid and efficient innovation of digital products and services. These platforms are designed to reduce complexity and accelerate the launch, servicing, and expansion of financial solutions and new customer journeys. Fintech enablement platforms allow financial organizations to drive innovation independently, without being dependent on third-party providers. This independence allows financial organizations to better meet the changing expectations of their customers.
The growth of embedded finance means that financial organizations of all types need to consider new customer journeys, workflows, and product design. This will help FIs stay ahead of the curve in a continually changing market and meet the changing needs of customers.
By leveraging fintech enablement platforms, financial organizations can future-proof their technology investments. These platforms provide the flexibility and agility needed to respond to the ever-changing demands of customers, and the financial services industry as a whole. Financial organizations should partner with fintech enablement platform providers who have a proven track record of delivering innovative solutions. This partnership should focus on working together to modernize core infrastructure and create new, customer-focused journeys while reducing the risk associated with technical debt.
In order to be effective, a fintech enablement platform must be scalable and able to continually evolve as the market changes. Low-code and no-code tools can help break down silos and free up technology resources, allowing product and strategy teams to drive new capabilities.
Ultimately, change management is about momentum. Financial organizations should adopt a rollout strategy that demonstrates value quickly and repeatedly in order to drive ongoing innovation. Whether you’re a large financial institution or a new market entrant, a fintech enablement platform can help you achieve your goals. Start anywhere and make anything – the possibilities are endless!
Want to learn more? Watch the full webinar on-demand.
Kyla is the Content & Communications Director at FintechOS. With 8 years of experience in content management and PR, she has spent the past 7 years growing content strategies at tech startups and scale-ups. In her free time, you can find her strolling through an antique market, visiting a park or brewery with her black lab, Dexter, or buying one too many house plants.