Innovation must be understandable and accessible to everyone. Here you will find a guide with the developments that are bringing greater transformation into the sector and improving the turnover of banking entities.
Our objective is to highlight which modules facilitate the initiation of activities that are new for the client (investment and automatic savings, for example), also to be able to retain clients with PFMs (or Expense Manager) that improve their financial health or reveal Insights with which to launch notifications hyper personalized at the exact moment, among many other novelties.
To eliminate consumer friction when launching new products, it is useful to use this type of module based on behavioral economics. Saving or investing is not very attractive at first, so manageable tools are offered to easily take small steps. It is a good way to eliminate the initial barriers of the general public and begin to increase the turnover.
Fraud detection. Cybersecurity and personal data protection
Artificial Intelligence can help institutions and companies to face the increasingly advanced techniques of cybercrime and phishing. It manages to save a lot of time and money, not to mention its efficiency and ability to learn with each use. The increase in digital transactions and multiple data sources pose a management challenge that affects millions of customers.
48% of consumers
would only share their financial information with another entity in exchange for a personalized and advantageous offer. *
*Business and Consumer Insight Report, Experian 2022.
PFM: Personal Financial Manager or Expense Manager
In the current situation of economic recession, it is essential to support our users with adequate financial education and practical tools to help them plan their domestic economy. Helping people to make conscious and responsible decisions positions us as their allies and increases their trust and engagement with our digital platforms.
Insights and recommendations generator
Understanding financial habits, identifying areas for improvement and displaying hyper-personalized automatic recommendations are essential to offer the best possible user experience. Thanks to AI engines, you will be able to understand your consumer in a deeper and more detailed way, as well as being able to launch innovative tools in just few weeks. This provides key information for the development of new products and services, now that customers are better known.
BNPL. Payment in installments integrated into the purchase process
Deferred payment platforms allow people to finance purchases so users will pay little by little. The access to this type of financial product means that more people can use your services. The integration of tools that allow loans to be offered in seconds guarantees customer retention and the acquisition of those who could be excluded from the system.
This digital medium of exchange was born more than 10 years ago, but lately its relevance has increased as the controversy grows about its practical utility, beyond mere speculation. Most popular cryptocurrencies have shown to be highly volatile and unreliable when it comes to accumulating value.
You can download the toolkit here.
Finance expert chatbots
Virtual assistants are already part of the mobile and desktop applications of many banking entities. There is a clear orientation towards the customer, increasingly demanding, due to the growing saturation of the market. Thanks to tools that use Natural Language Processing and AI, we can quickly understand what your needs and concerns are and offer solutions.
Carbon Footprint Measurement
Through specific tools you can find out what GHG emissions are generated by the financial habits of your users and help them mitigate the impact of their consumption pattern. The demand for products and services that offset the carbon footprint is growing every day. Making this information available to your customers can make an essential difference.
Decentralized Finance or DeFI
These are loan contracts, investment or other applications that are based on blockchain technology, so they do not need intermediaries to work. The blockchain is a database shared by users that records all transactions made. It is that community of developers and programmers that establishes the DeFi protocols using open source software.
PSD2 and Blockchain
PSD2 (Payment Services Directive 2) is the European banking and payment services regulation that affects banking transactions and online purchases. It guarantees the security of movements, opens bank payment services to third-party companies and uses Strong Customer Authentication (SCA), among others.
Financial scoring digital passport
It is a document that certifies a person’s credit history based on various sources, such as banks, credit institutions, collection agencies, etc. Having this certificate increases financial inclusion as it allows access to loans to people who would otherwise be excluded from the system. What is valued is the ability to pay, not the liquid funds of the user.
Cashless Pay services
The trend towards a cashless future is clear and continuing, no doubt strengthened after the pandemic. In cashless payments, transactions are made by transferring digital information instead of using physical currency, which offers greater security against fraud. In the coming years we will see if it takes hold or setbacks arise, as we can already see in Latin America.
Hyper-personalization of FinTech services
After the pandemic, we have seen how the mass consumption sector has turned towards improving the user experience, with special attention to the immersion and interactivity of products and services. It is essential to know the customer deeply in order to make hyper-personalized offers at the right time.
Analysis of consumer sentiment and markets. Big Data
Social listening allows us to know the needs of the public and their concerns. Due to Big Data and technological developments, we can understand consumer sentiment and put it at the center of our business strategy. The “feeling” includes a whole series of behaviors, conversations and actions that the user carries out digitally.
In the web3 era, security in the exchange of data and user privacy prevail, that is why the video platform is becoming popular to connect with bank managers. With more features than a simple video call, it offers the possibility of subsequently guarding the recording to guarantee the rights of the user. With this system, it is possible to operate remotely, ensuring the identity, as in face-to-face service, but without its limitations.
As the Central Bank of Spain indicates in its 2022 Financial Stability Report: “The digitization process of society is being reflected in the appearance of multiple wide-ranging innovations in the provision of financial services (…) Empirical evidence shows that In general, in the past, innovations in the financial sector have raised the potential growth of the economy.”
We’d love to hear your opinions about it and also if the information in this post will, in any way, change your portfolio of products and services in the future. We are at your disposal for any questions or queries you may have.