Effective Use of Intent Data for Financial Institutions

Intent Data for Financial Institutions

The world began its course to become a digital open book after the internet came into existence. With almost everything available for purchase, the internet has brought the world to the buyer's doorstep. With the purchase, comes the data, and with effective use of the data collected within a period, any industry can speculate the buyer’s journey and take compelling steps to attract the buyer.


Looking at the facts, around 93% of purchases start with internet research. Intent data is the name of the collection of the behavioral signals that a user shows while purchasing anything. This data helps businesses be available at the right time and the right place to pitch their product to the customer who is already interested in buying what they are selling.

Businesses can analyze these signals, accurately understand where the prospect is in its buying journey and can give a solution to the problem. With intent data, even financial institutions can up their game and generate greater ROI while accurately predicting the buyer’s position in its purchase journey, and provide the best value to attract him/her. With over terabytes of intent data available for use, financial institutions can use it to flourish in this pandemic hit economy, using fewer resources and marketing their services to ready to buy consumers.

Since its inception, intent data is on the top priority of every marketer’s to-do list, with its usage in advertising campaigns, outreach campaigns, content creation, SEO, etc. This article covers how financial institutions can use intent data to their advantage, provide value to the user, and draw massive attention to their platform to reach their ultimate goal and generate more revenue.

Before going further, let’s understand the basic concept of intent data and its type that comes into the use for financial institutions.

WHAT IS INTENT DATA?

Intent data refers to collecting information on online behavioral insights of internet users or prospects, allowing you to better focus on the audience that has more chances of buying your products or services.

To put it simply, intent data will help you display your product or services to those already searching for it. For example, your financial department is facing challenges to keep the accounting on track, checking the organization’s financial status, etc.

While, you look for the solutions online, you Google “best financial tool for in-house accounting.” Out of millions of search results, your search concludes with some of the top tools like Robotic Press Automation (RPA) in accounting kept aside. Now, your search would be more specific and according to the selected tools.

Now, for comparing and selecting the best tools, you may Google-
“How RPA keeps track on accounting?”

“What is the ROI of RPA in accounting for small enterprises?”

“What is the role of RPA in accounting?”

And so on. Notice how your search query got specified after some informative searches. Imagine having the power of intent data of your customers and satisfying them with your content. Intent data helps you nurture a highly targeted audience and eventually convert them into your clients.

When prospects face challenges, they search for the solution online. While providing the solution for any specific query, websites ask the prospects to accept their cookies. These cookies monitor their intent of searching and this data is then pushed to the marketers to mold their campaigns suited better for these targeted customers.

Let’s look at how financial institutions can focus their campaigns on highly targeted prospects with types of intent data.


TYPES/SOURCES OF INTENT DATA

The types of intent data divide the vast information of intent into three types - first party, second party, and third party.

First-party

The data you now gather on known contacts and anonymous visitors is first-party intent data. It can also involve prospective website connections, newsletters, emails, and social media. You can use the first-party intent data to segment messages, build workflows, and get more leads. You can assist your marketing and sales team in determining how to approach and convert a prospect.

Second-party

Second-party data refers to data collected by another company. It is like gaining insights into your prospects from the shops they have visited earlier. The second-party intent data includes review websites and publishing networks. And all this information is voluntarily provided by the user. Sometimes, the user may also share the contact details and their business email id.

Third-party

While some systems only track a network of pages, third-party intent data is gathered from all across the web. In several cases, this intent data is extracted using one of 3 techniques: reverse IP lookup, Bidstream data from ad networks and widgets, and media exchange/publishing participants. Third-party intent data can show the user’s intent that is relevant to your campaign.

STEPS TO BUILD GREATER ROI FROM INTENT DATA

How can a financial institution decide whether a particular lead is worth its investment? Answer: By lead qualification.

By segregating each lead into three types, you can decide whether the prospect is an active buyer or someone who wants some information over the web. It allows the marketing team to use their time efficiently and target the leads which are likely to convert. For significant ROI from intent data, financial institutions should gather intent data and segregate it into three types of B2B data- Fit data, Intent data, and Opportunity data.

Fit data

Fit data shows how well your product or services fit the need of the customers. Imagine if a financial institution provides loans on a low credit score, and a user searches for loans on a low credit score, we can call this collection of information as fit data. With this information, you can efficiently use your time and investment to target a specific prospect. This information collection may include the prospect’s age, sex, job level, job function, and the residing location. Fit data is generally the data that won’t change quickly. It may give you a right fit of prospects for your campaign but cannot tell you the right time or context of search intent. 

Opportunity data

Opportunity data is event-based data on particular prospects. Suppose, you are a financial institution providing a car loan on reduced interest rates, and you come to know that a specific company is crediting bonus salary to its employees. If you market your car loan services to their employees, you can have more leads as you know they have a bonus salary in their account. This is called an opportunity data, which sometimes is also referred to as data scoops that give you information about favorable conditions for sale. As the name suggests, the opportunity data gives you the data of a perfect opportunity to market your services to targeted prospects.

Intent data

Intent data indicates that the time has come to engage with folks who actively express a desire to acquire a solution. When the intent data is integrated with other signals and a solid fit, the chances of conversion increase dramatically.

It's helpful to know when there's movement at a company, but if you don't know who to connect with and don't have a phone number or email address for them, it's only informative. You need actionable data along with intent data to perform a perfect marketing campaign.

COMMON USE OF INTENT DATA


A Segment to sort out active prospects

With the use of intent data, B2B marketers find companies actively looking for products or services they are serving. Intent data solutions provide segmentation tools that you can utilize to sort out active prospects that fit perfectly with your services.

This segmentation tool can help you filter your prospect with an unlimited combination of the type of company, contact details, location, industry, and technology they use.

Intent data for Account-Based Marketing

Leading B2B marketers use intent data to drive their ABM campaigns as it naturally fits these campaigns. ABM and intent data are  the two sides of the same coin, as ABM delivers results through specific account’s interest and intent data provides timely opportunities to initiate the contact. Integrating both helps you elevate your marketing reach.

Intent Data for marketing campaign Optimization

Integrated marketing strategies help financial institutions because marketers can pump useful insights to drive effective and relevant demands. The sales team of financial institutions get into the conversation with the buyer while having more information on their pain points and what solutions they are looking for, giving them an upper hand in exchange. 

SIGNIFICANT FINANCIAL MARKETING TREND


Insight-driven marketing

With the help of effective machine learning and artificial intelligence, insight-driven marketing helps financial institutions to offer financial assistance to the right fit of customers. Marketers can further collect the right type of customers that fits the services and not the other way around. Prospects with other financial needs can be routed to more appropriate services you offer.

Awareness of the customer journey

Intent data helps financial institutions optimize and understand the customer journey and correctly map customer interactions. It enables to influence the end-to-end experience of the customer. By having a perfect understanding of where the customer stands in the customer journey, financial institutions can market their services according to their needs.

Increased personalization

Intent data allows the marketers to look further into the minds of their prospects. It enables them to read the customers as an open book while segmenting them on their thought process. For example, which customer is more savings-oriented? Which one is planning for their retirement? With these insights, marketers can match the right customers to their services with the relevant type of marketing to compel the audience.

TYPES OF MARKETING SIGNAL AVAILABLE

Signals are the hints prospects resonate, showing financial institutions they are ready for being potential customers. These signals are everyday actions like Googling stuff they need orLike hard searching online, clicking on financial institution ads, applying for any loans, and paying off debts. Financial institutions can use these signals to run highly specific marketing campaigns.

Let’s look into these marketing signals further.
Most marketing signal falls into three major categories, such as:

Behavior-based

The behavior-based marketing signal includes hard searching like credit inquiries and online searches that signal intent to look for services. It may also include some minor changes that indicate future requirements like a change of residence or buying intent of large purchases like automobiles and real estate.

Event-based

Event-based marketing signals include automobile lease expiring, mortgage rate settings, or child passing the high school. These are the hints that indicate the prospect is going to have a requirement for your services. These signs show that the customer is about to have a significant financial shift, and financial institutions can use this opportunity to market their services.

Predictive

Predictive signals are passive hints that prospects show. It may not be as obvious as behavior-based, but it can set a boundary to your targeted customers. Some of the predictive marketing signals could have data of savings, debit consolidation, and mortgage refining. Predictive marketing signal can give low fidelity and can assure you the maximum coverage of your marketing campaign.

CONCLUSION

Using signals to attract and retain consumers is an effective component of a well-thought-out marketing strategy. Moving to a signals-based strategy, on the other hand, does not have to be a huge overhaul of your current procedures. Continue to use your tried-and-true strategy, but experiment with new ways of analyzing and responding to signals.

Worried about how much money you'll need to set aside to fund the signal-based marketing strategies?

You can assess the ROI of the marketing strategy before expanding your program if you start with a scalable service with no commitments.

Traditional signals continue to be relevant and form the basis for customer-focused marketing. Combining them with potentially powerful signals that indicate purchase intent will enable proactive communication and elevate financial marketing initiatives to the next level.

Spotlight

Ujjivan Small Finance Bank Limited

Ujjivan Small Finance Bank Limited is a banking company licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on small finance bank business. It is also a wholly owned subsidiary of Ujjivan Financial Services Ltd. The bank has commenced its operations with effect from February 1, 2017.

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Financial Management, Payments

Unlocking Crypto's Power: Digital Currency and Its Boundless Potential

Article | July 13, 2023

Delve into the transformative potential of digital currency and B2B crypto payments, as they hold the key to revolutionizing conventional financial systems and advancing financial inclusion. Contents 1. Introduction 2. Benefits of Adopting Crypto in B2B Payments 3. Overcoming Challenges in B2B Digital Currency Integration 4. Trends and Innovations in Digital Currency 5. Future Aspects 1. Introduction The digital currency has emerged as the driving force behind the immense potential of cryptocurrencies, revolutionizing traditional financial systems and reshaping how individuals perceive and utilize money. Digital currencies have become a focal point of economic discourse, offering new avenues for financial inclusion, efficiency, and security in the era of technological innovation and decentralization. This paradigm shift in the concept of currency has sparked a global conversation on the future of finance, making it imperative to explore the transformative role of digital currencies. 2. Benefits of Adopting Crypto in B2B Payments Cryptocurrency is gaining prominence in mainstream usage by converting conventional coins to NFTs. It has led businesses to wonder whether electronic payments could replace regular cash. Crypto in B2B payments furnishes a cost-effective, swifter, and more efficient alternative to cash and bolsters the security of customer privacy during transaction execution. Here are the advantages of incorporating cryptocurrencies into B2B payments: Fraud Defender Most B2B payments use traditional methods like checks, cards, wire transfers, or cash, which are regulated and often involve intermediaries, making them susceptible to fraud. In contrast, cryptocurrency transactions are more secure, avoiding traditional financial institutions and relying on blockchain technology for direct execution and verification through distributed algorithms on network nodes. Swift Transactions Infusing B2B crypto payments into the payment spectrum guarantees faster transaction processing than conventional methods. This efficiency stems from a streamlined process involving fewer intermediaries, reducing processing fees. Boosting Business Reach Industries like mining, as well as oil and gas, often operate in countries with limited banking infrastructure, requiring alternative payment methods. Cryptocurrency provides a solution, enabling cashless transactions. Still, businesses must adhere to local regulations, as cryptocurrency use doesn't exempt them from responsibility, given restrictions on engaging with foreign governments. Secure Ownership Control In B2B crypto transactions, exclusive ownership control is a key feature, ensuring that users retain sole ownership of their encryption keys unless they choose third-party wallet management services. This differs from traditional banking or credit cards, which can lead to account closure due to terms of service violations, presenting re-entry difficulties. Resilient Adaptability 'Privacy coins' drive increased anonymity on blockchain networks, while supply chain tokens improve efficiency across various industries. These innovations underscore the versatility and continuous development of cryptocurrency. 3. Overcoming Challenges in B2B Digital Currency Integration In B2B digital currency integration, numerous challenges arise that demand strategic mitigation. Below are some of the challenges, along with their pathways to address them effectively: Managing Payment Method Diversity in B2B Transactions Moving from paper-based procedures to streamlined B2B payments is praiseworthy; however, substantial challenges must be addressed to accept digital payments broadly. To effectively navigate the myriad payment methods available to B2B clients and facilitate their digital acceptance, businesses must assess factors including cost, speed, security, accessibility, and compliance. Selecting the most suitable digital payment method entails ensuring that systems are contemporary, equipped with cutting-edge technologies such as encryption and tokenization, and capable of safeguarding customer data against cyber threats. It is equally imperative for businesses to stay attuned to evolving regulations and statutes governing digital payments to maintain compliance with industry norms. Ensuring Robust and Secure Interconnectivity Establishing a secure connection between two entities is a prerequisite for effective digital payments. This mandate encompasses the authentication of both parties and the deployment of encryption technologies to safeguard customer data from unauthorized access or tampering during transmission. Furthermore, mutual trust and access to a secure platform skilled at handling large data transfers are necessary. Creating such a system can be overwhelming, requiring substantial time and resources. Overcoming Legacy Infrastructure Challenges Many companies rely on obsolete legacy systems for B2B payments, which may need to be compatible with current digital payment solutions. Before modernizing payment processes, companies must evaluate the feasibility, costs, and benefits of upgrading these systems. This endeavor is costly and resource-intensive, requiring comprehensive security measures to protect customer data from cyber threats. Payment Platform Integration in Enterprises For the prompt processing of payments, businesses should smoothly incorporate their selected payment platform with current enterprise systems, including accounts receivable software, accounts payable software, or ERP systems. Achieving this integration is frequently intricate and time-consuming due to various platforms' distinct technical specifications and protocols. This poses a significant challenge for businesses, demanding substantial effort and resources to ensure the integration's success. Additionally, companies must guarantee data security during transfer and compliance with industry regulations and standards for all transactions. Managing Digital Payment Regulations Companies venturing into B2B cross-border payments must carefully comply with all applicable regulations governing procedures such as KYC/AML, data privacy laws, and international financial transactions. Ensuring compliance with local laws across multiple jurisdictions complicates this. The challenge lies in the need for companies to remain vigilant regarding regulatory changes, requiring substantial investments in time, expertise, and continuous updates to stay abreast of the latest developments. Simplifying Payment Processing for Efficiency Companies must also ensure that payment processing is seamless and efficient from both the clients' and providers' perspectives. Minimizing manual interventions wherever possible is imperative to maximize the operational efficiency gains inherent in digital B2B payments, including reducing processing timeframes and associated costs Seamless payment processing necessitates establishing robust processes, infrastructure, and technology, which, in turn, requires significant effort and resource allocation. This can be challenging for businesses grappling with tight timelines and limited budgets. Addressing Fraud and Security Risks Cybercrime and fraudulent activity pose a significant threat in digital transactions where two entities exchange potentially sensitive financial data. Failure to implement appropriate buyer risk management measures exposes both parties involved in the transaction to a heightened risk of financial loss due to fraud or security breaches. Although various security measures exist to safeguard data, companies must take additional steps to ensure the security of their digital payment platforms and protect sensitive information. This undertaking poses a challenge, demanding additional resource allocation, time, and effort to implement effective fraud detection and prevention measures. 4. Trends and Innovations in Digital Currency McKinsey and Company cite an 11% growth in digital payment penetration from 2021 to 2022. Moreover, this trend is only expected to continue, with more users adopting digital payments as their primary method for financial transactions. [Source – Vation Ventures] The adoption of various digital technologies is becoming increasingly prevalent. For instance, financial institutions swiftly embrace cloud computing to streamline and enhance their operational procedures for clients. Blockchain, an emerging technology, is gaining prominence as it facilitates swift and secure transactional activities beyond its conventional association with cryptocurrencies. It ensures the fast recording and monitoring of transactions and supports the legal facets of digital payments. Concurrently, biometric authentication methods, including fingerprint and facial recognition, are gaining prominence in digital payments, introducing notable security and privacy concerns. Despite these challenges, biometric technology is poised for an upward trajectory. Regarding services and service providers, there is a growing demand for real-time payment and settlement capabilities, driven by individuals and businesses seeking expedited and rapid transaction processing instead of conventional, less efficient batch methods. While this technological proliferation offers substantial advantages, it also raises significant considerations, including those related to privacy and anti-fraud measures. 5. Future Aspects According to Bank of International Settlements, more than 50 central banks, representing the bulk of global GDP, are exploring digital currencies. The Economist reports that ‘the EU wants a virtual euro by 2025, Britain has launched a task force, and America, the world’s financial hegemon, is building a hypothetical e-dollar.’ [Source – IBM] The future of digital currency holds significant promise and potential for transformative changes in finance and commerce. The rapid development of central bank digital currencies (CBDCs), increasing adoption of cryptocurrencies, and ongoing innovation in blockchain technology underscore the enduring significance of digital currencies. These advancements offer the potential for improved financial inclusivity, lower transaction costs, and enhanced payment system efficiency. Nevertheless, these opportunities go hand-in-hand with notable regulatory and security challenges that require attention to ensure digital currencies' safe and secure integration into the financial systems. Effective collaboration among governments, financial institutions, and technology providers is crucial to unlocking the full potential of digital currencies while mitigating potential risks. With careful planning and strategic implementation, digital currencies have the potential to reshape the future of finance, delivering a more accessible, efficient, and inclusive financial system for all.

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Payments, Fintech

Proofing B2B Payments with E-Invoicing: A Path to Sustainable Growth

Article | August 17, 2023

Discover the digital payments’ momentum, powered by proofing B2B payments. Explore how professionals navigate skill gap challenges in the era of digital transformation and electronic transactions. Contents 1. Introduction 2. Need for Future-Proofing B2B Payments 3. Advantages of Electronic Billing in B2B Transactions 4. Traditional Paper-Based Invoicing versus Electronic Billing 5. Security and Compliance in Digital Payments 6. Future Scope 1. Introduction In a move towards digitalization and streamlining business processes, France will implement mandatory B2B e-invoicing and e-reporting from July 2024 until January 2026. This new e-invoicing mandate introduces the Continuous Transaction Controls (CTC) model, which impacts all companies operating in France. [Source: Nuflow] The adoption of electronic invoicing and payments, also known as e-invoicing, is becoming increasingly essential for businesses across various sizes and industries. Through digitizing the invoicing procedure, e-invoicing empowers companies to realize many advantages, including heightened efficiency, fortified security measures, fiscal savings, increased precision, and augmented transparency in financial transactions. This transformative approach to invoicing is gaining traction as a pivotal tool for businesses seeking to modernize their operations and bolster economic sustainability. Furthermore, adopting electronic billing systems minimizes the likelihood of errors by enabling the automatic transfer of invoice data between systems and reducing the need for manual data entry. 2. Need for Future-Proofing B2B Payments The need for future-proofing B2B payments has gained unprecedented urgency in the wake of the COVID-19 pandemic, which catalyzed the rapid evolution of digital payment technologies. This global crisis has compelled businesses across various industries to expedite their transition towards cashless and digital payment solutions, intensifying the demand for agility and adaptability. Technology professionals are facing significant pressure as they navigate the need for rapid upgrades, digital transformation efforts, and the essential task of closing skill gaps within their organizations. Furthermore, Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) have faced exceptional challenges in banking and finance as the pandemic rendered traditional in-person banking obsolete, forcing institutions to pivot toward online-only and cashless operations. In this situation, the need for future-proofing B2B payments has become more than just a strategic requirement; it has become a critical lifeline for businesses striving to excel in the swiftly advancing, digitally-focused era that emerged after the pandemic. 3. Advantages of Electronic Billing in B2B Transactions According to a report by Arden Partners, e-invoicing provides organizations with 70% greater visibility into their financial processes. [Source: LinkedIn] This transformative approach to billing is steadily gaining prominence as an essential instrument for companies seeking to modernize their practices and enhance financial resilience. Optimized Process Efficiency Integrating e-invoicing serves to fine-tune billing procedures, alleviating errors and delays while delivering heightened operational efficiency. This, in turn, empowers businesses to allocate resources with greater precision and amplify their overall productivity. Cost Savings The cost savings realized through adopting electronic billing in B2B transactions extend beyond eliminating paper-based invoicing. By automating invoice processing, businesses can significantly reduce overhead costs associated with manual data entry, postage, and storage, allowing for more efficient allocation of financial resources to core business activities. Heightened Accuracy E-invoicing's heightened accuracy reduces the potential for manual errors, such as inaccuracies in data entry and mathematical calculations standard in traditional invoicing, but also contributes to enhanced trust in financial transactions. This precision ensures that billing information is reliable, fostering smoother B2B interactions and financial accountability. Enhanced Security E-invoicing systems provide more secure methods for transmitting invoices and associated data than conventional paper-based invoicing. Its solutions frequently incorporate advanced features like encrypted documents and digital signatures, ensuring document authenticity and controlled access to user accounts. Consequently, records are safeguarded against security breaches, reducing the risks of errors and fraudulent activities. Improved Visibility into Financial Transactions E-invoicing offers businesses an automated and centralized repository for storing, tracking, and managing their invoices. This facilitates simplified payment monitoring and provides comprehensive insight into financial transactions spanning multiple offices, locations, and departments. 4. Traditional Paper-Based Invoicing versus Electronic Billing Electronic Billing or e-invoicing can be described as the electronic exchange of invoices in structured data formats between software applications, distinct from traditional methods like sending PDFs or emails. This approach is fully automated, and when compared to conventional invoicing, it demonstrates remarkable efficiency in areas such as invoice processing, costs, visibility, transparency, data accuracy, and security for both buyers and sellers. Transaction Processing Traditional invoice processing involves multiple time-consuming steps, from creating and sending invoices to reviewing, approving, and archiving them. This manual process is prone to errors, slows operations, and can lead to payment delays, mainly when staff handles multiple tasks simultaneously. This delay can be especially problematic for smaller businesses, impacting their cash flow. In ideal conditions, paper invoices take about 23 days to process, but this timeframe can stretch to a cumbersome 90 days when errors occur. On the other hand, B2B electronic payments operate differently, simplifying the process for sellers and buyers. Sellers generate invoices from their purchase orders (PO) within their software. The buyer's software then matches the invoice with the PO for payment approval. Automation eliminates the manual steps, making e-invoicing 60-80% more efficient than traditional paper-based processing, with some sources citing an average processing time of just five days. This accelerates payments for sellers and streamlines operations for buyers. Financial Outlays Traditional invoicing entails a range of expenses for both buyers and sellers. These include costs associated with printing, whether physical or PDF invoices are used, leading to expenditures on paper, ink, and printer maintenance. Labor expenses also escalate as businesses expand, requiring additional personnel for invoicing tasks. Furthermore, physical invoices entail postage costs when mailed, and the need to file physical invoices incurs its own expenses. Conversely, e-invoicing significantly reduces costs due to the diminished need for manual processing and the electronic transmission of invoices. These advancements have made e-invoices approximately 70% cheaper than their traditional counterparts. Additionally, e-invoicing often allows buyers to adhere to their suppliers' payment terms, mitigating late fees and enabling early payment discounts. Visibility and Data Precision Traditional invoicing can be a complex process involving various platforms and software, as well as the maintenance of intricate physical and electronic filing systems. This complexity can pose challenges in effectively managing, preserving, and retrieving records, impeding the reporting process. Consequently, this can adversely affect the precision of a business' performance metrics and the data quality used in decision-making. In contrast, e-invoicing streamlines this process by enabling businesses to utilize a single software solution for invoice creation and processing. This simplification enhances visibility and transparency in managing payables and receivables. It also reduces the need to consolidate information from multiple systems and handle paper documents. Moreover, the diminished risk of errors resulting from manual processing contributes to improved data accuracy. Security Traditional invoicing poses significant security risks, including the potential for counterfeit or tampered invoices, where invoice details can be altered without the knowledge of either party, as well as the susceptibility to billing scams and fraudulent activities, with invoices sometimes sent to misleading sources, resulting in financial losses due to the easily adjustable formats and the risks associated with sending invoices via mail or email. In addition to its role in facilitating secure B2B payments and transactions, e-invoicing offers a heightened level of security. It requires certified access points for sending and receiving invoices, ensuring adherence to a robust and reliable framework mandated for all participants. E-invoices are sent in a standardized format that cannot be altered. This approach significantly improves the traceability of archive management, thus enhancing your audit trail. Moreover, e-invoicing often includes advanced encryption and authentication measures, further safeguarding sensitive financial data and reducing the risk of fraudulent activities. These combined security features make e-invoicing a compelling choice for businesses seeking both efficiency and enhanced security in their payment processes. 5. Security and Compliance in Digital Payments Digital payments offer heightened security compared to offline transactions as they eliminate the need for individuals to carry physical cash or cards, reducing the risk of theft and providing a comprehensive electronic trail for tracking and identifying potential fraud. Moreover, they remove businesses' need to hold cash on-site, enhancing security by transferring funds directly to a secure bank account. However, digital payments also pose unique security challenges, such as verifying consumer identities in the faceless online environment, which may necessitate innovative security measures to counter potential fraud and theft. Businesses that accept digital payments encounter several security risks, encompassing the following aspects: Third-party Risk Many B2B payments companies rely on third-party entities to streamline operations and reduce costs. However, this practice introduces additional layers of risk if companies fail to thoroughly evaluate their prospective third-party partners before establishing a business relationship. Many third-party vendors outsource their operations to external entities, thus generating fourth and fifth-party risks. Enterprises often engage with many vendors, such as payment processors, point-of-sale system providers, and payment gateway service providers. Inadequate security controls for third-party involvement can expose all the data transmitted through these devices and applications to various security vulnerabilities. Phishing Scams Phishing has remained a well-established method for illicit data acquisition and is a potent hacking technique. The hacker typically solicits sensitive personal information to fulfill an urgent request, such as completing a loan application requiring banking details. Hackers can exploit the obtained personal information upon the victim's compliance to gain unauthorized access to credit cards and bank accounts. Phishing scams can target anyone, from lower-level employees to senior management personnel, putting data security at risk and facilitating theft. Malware Malware incidents arise when users download applications, files, or attachments that contain malicious software. Once the malware infects a device, the perpetrator behind the software gains unauthorized access to all stored information. Although many companies install firewalls and antivirus software on their desktop and laptop computers, these protective measures are frequently omitted for mobile devices. Many businesses now employ tablets or smartphones as point-of-sale operating systems to process payments. The substantial volume of cardholder information stored on these devices renders them susceptible to malware attacks, potentially compromising the data of any individual who has conducted a transaction using the affected device. 6. Future Scope This article explores electronic billing, focusing on proofing B2B payments and emphasizing the need for future-proofing payment processes. While the advantages of electronic billing over traditional paper-based invoicing have been highlighted, the future scope resides in the continuous evolution of technology and regulations in digital payments. As businesses increasingly adopt e-invoicing solutions for efficiency gains, there will be a growing demand for innovative tools that enhance security and compliance, ensuring the smooth flow of transactions in a secure, transparent, and sustainable manner. Moreover, integrating emerging technologies like blockchain and artificial intelligence may further revolutionize B2B payment solutions, presenting exciting opportunities and challenges for businesses seeking to stay competitive in financial transactions.

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Financial Management, Payments

Why Payments-as-a-Service is the first choice for FIs

Article | August 4, 2023

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Spotlight

Ujjivan Small Finance Bank Limited

Ujjivan Small Finance Bank Limited is a banking company licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on small finance bank business. It is also a wholly owned subsidiary of Ujjivan Financial Services Ltd. The bank has commenced its operations with effect from February 1, 2017.

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Fiserv Accelerates Collaboration Among Financial Institutions and Fintechs with Streamlined Access to Core Platform APIs

Business Wire | October 26, 2023

Fiserv, Inc. a leading global provider of payments and financial services technology solutions, announced that it has streamlined access to its core banking APIs to accelerate innovation across the industry. Third-party developers now have instant access to collaborative workspaces through Banking Hub, a single location to access Fiserv banking APIs within its Developer Studio. Over 500 developers from fintechs, payfacs, merchants, major brands and system integrators already have begun using a workspace to co-develop unique use cases. “Instant self-service integration tools address developers’ need to efficiently test live banking APIs and streamline the path to bring next-generation banking solutions to market,” said Tom Eck, senior vice president of Digital Technology at Fiserv. “This launch is part of our broader strategy to make it faster and easier for financial institutions, fintechs and merchants to connect with each other and work together to launch unique initiatives that enhance customer relationships and expand revenue opportunities.” Banking Hub accelerates and streamlines the path for fintechs to build, test, certify and deploy pre-integrated apps in AppMarket, a marketplace for Fiserv financial institution clients to access third-party innovations, or to embed a range of financial services into their customer experience. Banking Hub provides development teams an organized space to collaborate and manage projects with multiple workflows. Developers can explore how Fiserv core banking APIs can support banking as-a-service (BaaS), allowing them to launch new digital experiences and expanding financial institution access to a broad range of third-party fintech solutions. said Ryan Canin, CEO of DocFox. As a fintech founder, I’m impressed with the way Fiserv continues to evolve their business to embrace collaboration that drives the financial services industry forward. By streamlining the way fintechs like DocFox connect with their solutions, Fiserv is creating opportunities for consumers and small businesses to access new experiences and innovative capabilities through their financial institutions. [Source:Business Wire] Fiserv designed Banking Hub workspaces to deliver a self-service experience. With quick start guides and comprehensive documentation, code samples and videos, developers can now build and validate a proof of concept at speed, which gives them an advantage in a fast-moving market. In a few clicks, a developer can create an account, add a workspace, and be issued an instant API key to start working with Fiserv core banking APIs. Trial accounts are currently available at no charge, and developers can upgrade to a dedicated workspace. Subscriptions to a dedicated workspace give fintechs everything needed to bring their project to production. Fiserv has published the workspace environment for Finxact, a next-gen innovation platform designed for the business of banking, fintech and embedded finance. Development environments are also available for Premier®, the most widely used core banking platform in the U.S., and Signature®, a customizable platform used by many regional and larger financial institutions. A workspace for DNA® will be available in 2024, and workspaces for additional Fiserv core platforms will continue to be made available at a rapid clip. “Financial institutions are pressed to grow their portfolio through tailored services, accelerate speed to market and appeal to younger generations,” said Niranjan Ramaswamy, vice president of Open Finance & Banking Hub at Fiserv. “Pre-integrated fintech solutions can help address these challenges by allowing financial institutions to cost effectively address targeted strategies and growth opportunities. With compelling new capabilities in gig economy banking and small and mid-size business lending, for example, financial institutions can expand customer relationships while growing deposits.” In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life.

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Dragonfly Financial Technologies Adds FedNow Payments to Digital Composable Banking Solution

PR Newswire | October 25, 2023

Dragonfly Financial Technologies Corp., a digital banking and treasury management FinTech, today launched FedNow Payments, which gives banks the ability to use the recently deployed FedNowÒ Service. Launched in late July 2023, the FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. Dragonfly's FedNow Payments is a standalone solution that can be added to any bank's digital offering. Dragonfly's FedNow Payments enables instant, 24/7/365 payments, which permits faster payroll processing, more intuitive bill payments, improved cash flow improving reconciliation, cash forecasting and liquidity management and enhanced overall transaction efficiency. The solution will be interoperable with existing payment systems, enabling seamless integration with various digital banking platforms and financial service providers. Real-time payments are forecasted to facilitate additional economic output to the tune of $173 billion in formal GDP, as well as forecasted to drive $184 billion in aggregated net savings for consumers and businesses. The FedNow Service is set to transform the current payment ecosystem. As we continue to expand our digital composable banking platform, we know it's of critical importance to have the latest payment solutions available for our customers. said Jim Gillespie, Chief Product Officer at Dragonfly Financial Technologies Corp. Our FedNow Payments enables banks to provide their customers with real-time, flexible payments that are secure and scalable, and we're excited to offer this new payment option to banks that are making the jump to the FedNow Service. Dragonfly's FedNow Payments will also be added to its industry-leading Universal Online Banking platform - the only composable banking platform on the market purpose-built for today's digital and embedded business banking needs. Because the Dragonfly platform is designed for ultimate flexibility, agility and ease of use, customers can choose the implementation option best suited for the needs and size of the bank and their corporate clients. FedNow Payments is a payments option available in each composable banking deployment: Dragonfly Digital, Dragonfly as a Service and Dragonfly Embedded Banking. About Dragonfly Financial Technologies Corp. Dragonfly Financial Technologies is a banking-as-a-service FinTech powering innovative digital customer experiences for commercial banking institutions. Dragonfly Commercial Banking Platform unites internal banking systems and unlocks their collective value, enabling banks to provide a superior customer experience and introduce new services with speed and ease. And with the industry's largest portfolio of APIs, the Dragonfly platform connects seamlessly to the world's most popular FinTech applications. Commercial banking customers worldwide – including top-10 banks in the US and Asia – rely on Dragonfly to initiate and collect payments and manage daily financial operations for their corporate clients. For more information, visit www.dragonflyft.com.

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Trading Systems

Finastra and ELCY partner to bring Corporate Trade Finance Portal to market

PR Newswire | October 23, 2023

Finastra, a global provider of financial software applications and marketplaces, is partnering with ELCY, a specialist in e-commerce solutions for the processing of international trade finance, to provide a trade finance solution for corporates. The Corporate Trade Finance Portal from Finastra and ELCY will enable corporates to communicate in a secure and authenticated manner with all their banks through one centralized platform. As a result, corporates will benefit from greater visibility and real-time control of all trade finance exposures across their organizations. The transition away from the complexity of connecting to multiple bank proprietary systems and the removal of inefficient paper-based processes will also deliver significant cost and efficiency savings. Finastra is thrilled to build on our long-term relationship with ELCY through a global collaboration that creates immediate value for both parties, said Jaime Lynn, Vice President, Enterprise Solutions, Finastra. ELCY brings a wealth of expertise in meeting the trade finance needs of corporates, while Finastra meets the end-to-end digitization needs of banks focused on international trade and supply chain finance. Our close collaboration with ELCY expands our suite of solutions for corporates, enabling them to connect to all banks supplying them trade finance through a single portal. Corporate users benefit from much greater visibility and control in managing their cash flow and trade finance exposures and in reducing risk. Robin Cohen, Chief Executive Officer, ELCY added: "Our partnership with Finastra will further increase our visibility and reach in the market, helping us deliver the benefits of our multi-bank portal solution to corporates globally. Customers using our joint Corporate Trade Finance Portal will be equipped to communicate seamlessly, both on the import and export side, with any SWIFT-enabled bank in the world to manage their day-to-day trade finance processing. All instructions or messages sent through the portal can be tailored to conform with the message type preferred by the bank in question. Furthermore, the portal includes extensive modular functionality enabling corporates to monitor counterparty and bank exposure, manage global bank limits and provide reports for credit and treasury departments all in real time." The Corporate Trade Finance Portal is available as a cloud-based, multi-tenant SaaS solution meaning no software installation is required on site and all users benefit from the ability to adapt quickly to new market requirements through centrally-managed software upgrades.

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Core Banking

Fiserv Accelerates Collaboration Among Financial Institutions and Fintechs with Streamlined Access to Core Platform APIs

Business Wire | October 26, 2023

Fiserv, Inc. a leading global provider of payments and financial services technology solutions, announced that it has streamlined access to its core banking APIs to accelerate innovation across the industry. Third-party developers now have instant access to collaborative workspaces through Banking Hub, a single location to access Fiserv banking APIs within its Developer Studio. Over 500 developers from fintechs, payfacs, merchants, major brands and system integrators already have begun using a workspace to co-develop unique use cases. “Instant self-service integration tools address developers’ need to efficiently test live banking APIs and streamline the path to bring next-generation banking solutions to market,” said Tom Eck, senior vice president of Digital Technology at Fiserv. “This launch is part of our broader strategy to make it faster and easier for financial institutions, fintechs and merchants to connect with each other and work together to launch unique initiatives that enhance customer relationships and expand revenue opportunities.” Banking Hub accelerates and streamlines the path for fintechs to build, test, certify and deploy pre-integrated apps in AppMarket, a marketplace for Fiserv financial institution clients to access third-party innovations, or to embed a range of financial services into their customer experience. Banking Hub provides development teams an organized space to collaborate and manage projects with multiple workflows. Developers can explore how Fiserv core banking APIs can support banking as-a-service (BaaS), allowing them to launch new digital experiences and expanding financial institution access to a broad range of third-party fintech solutions. said Ryan Canin, CEO of DocFox. As a fintech founder, I’m impressed with the way Fiserv continues to evolve their business to embrace collaboration that drives the financial services industry forward. By streamlining the way fintechs like DocFox connect with their solutions, Fiserv is creating opportunities for consumers and small businesses to access new experiences and innovative capabilities through their financial institutions. [Source:Business Wire] Fiserv designed Banking Hub workspaces to deliver a self-service experience. With quick start guides and comprehensive documentation, code samples and videos, developers can now build and validate a proof of concept at speed, which gives them an advantage in a fast-moving market. In a few clicks, a developer can create an account, add a workspace, and be issued an instant API key to start working with Fiserv core banking APIs. Trial accounts are currently available at no charge, and developers can upgrade to a dedicated workspace. Subscriptions to a dedicated workspace give fintechs everything needed to bring their project to production. Fiserv has published the workspace environment for Finxact, a next-gen innovation platform designed for the business of banking, fintech and embedded finance. Development environments are also available for Premier®, the most widely used core banking platform in the U.S., and Signature®, a customizable platform used by many regional and larger financial institutions. A workspace for DNA® will be available in 2024, and workspaces for additional Fiserv core platforms will continue to be made available at a rapid clip. “Financial institutions are pressed to grow their portfolio through tailored services, accelerate speed to market and appeal to younger generations,” said Niranjan Ramaswamy, vice president of Open Finance & Banking Hub at Fiserv. “Pre-integrated fintech solutions can help address these challenges by allowing financial institutions to cost effectively address targeted strategies and growth opportunities. With compelling new capabilities in gig economy banking and small and mid-size business lending, for example, financial institutions can expand customer relationships while growing deposits.” In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life.

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Digital Banking

Dragonfly Financial Technologies Adds FedNow Payments to Digital Composable Banking Solution

PR Newswire | October 25, 2023

Dragonfly Financial Technologies Corp., a digital banking and treasury management FinTech, today launched FedNow Payments, which gives banks the ability to use the recently deployed FedNowÒ Service. Launched in late July 2023, the FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. Dragonfly's FedNow Payments is a standalone solution that can be added to any bank's digital offering. Dragonfly's FedNow Payments enables instant, 24/7/365 payments, which permits faster payroll processing, more intuitive bill payments, improved cash flow improving reconciliation, cash forecasting and liquidity management and enhanced overall transaction efficiency. The solution will be interoperable with existing payment systems, enabling seamless integration with various digital banking platforms and financial service providers. Real-time payments are forecasted to facilitate additional economic output to the tune of $173 billion in formal GDP, as well as forecasted to drive $184 billion in aggregated net savings for consumers and businesses. The FedNow Service is set to transform the current payment ecosystem. As we continue to expand our digital composable banking platform, we know it's of critical importance to have the latest payment solutions available for our customers. said Jim Gillespie, Chief Product Officer at Dragonfly Financial Technologies Corp. Our FedNow Payments enables banks to provide their customers with real-time, flexible payments that are secure and scalable, and we're excited to offer this new payment option to banks that are making the jump to the FedNow Service. Dragonfly's FedNow Payments will also be added to its industry-leading Universal Online Banking platform - the only composable banking platform on the market purpose-built for today's digital and embedded business banking needs. Because the Dragonfly platform is designed for ultimate flexibility, agility and ease of use, customers can choose the implementation option best suited for the needs and size of the bank and their corporate clients. FedNow Payments is a payments option available in each composable banking deployment: Dragonfly Digital, Dragonfly as a Service and Dragonfly Embedded Banking. About Dragonfly Financial Technologies Corp. Dragonfly Financial Technologies is a banking-as-a-service FinTech powering innovative digital customer experiences for commercial banking institutions. Dragonfly Commercial Banking Platform unites internal banking systems and unlocks their collective value, enabling banks to provide a superior customer experience and introduce new services with speed and ease. And with the industry's largest portfolio of APIs, the Dragonfly platform connects seamlessly to the world's most popular FinTech applications. Commercial banking customers worldwide – including top-10 banks in the US and Asia – rely on Dragonfly to initiate and collect payments and manage daily financial operations for their corporate clients. For more information, visit www.dragonflyft.com.

Read More

Trading Systems

Finastra and ELCY partner to bring Corporate Trade Finance Portal to market

PR Newswire | October 23, 2023

Finastra, a global provider of financial software applications and marketplaces, is partnering with ELCY, a specialist in e-commerce solutions for the processing of international trade finance, to provide a trade finance solution for corporates. The Corporate Trade Finance Portal from Finastra and ELCY will enable corporates to communicate in a secure and authenticated manner with all their banks through one centralized platform. As a result, corporates will benefit from greater visibility and real-time control of all trade finance exposures across their organizations. The transition away from the complexity of connecting to multiple bank proprietary systems and the removal of inefficient paper-based processes will also deliver significant cost and efficiency savings. Finastra is thrilled to build on our long-term relationship with ELCY through a global collaboration that creates immediate value for both parties, said Jaime Lynn, Vice President, Enterprise Solutions, Finastra. ELCY brings a wealth of expertise in meeting the trade finance needs of corporates, while Finastra meets the end-to-end digitization needs of banks focused on international trade and supply chain finance. Our close collaboration with ELCY expands our suite of solutions for corporates, enabling them to connect to all banks supplying them trade finance through a single portal. Corporate users benefit from much greater visibility and control in managing their cash flow and trade finance exposures and in reducing risk. Robin Cohen, Chief Executive Officer, ELCY added: "Our partnership with Finastra will further increase our visibility and reach in the market, helping us deliver the benefits of our multi-bank portal solution to corporates globally. Customers using our joint Corporate Trade Finance Portal will be equipped to communicate seamlessly, both on the import and export side, with any SWIFT-enabled bank in the world to manage their day-to-day trade finance processing. All instructions or messages sent through the portal can be tailored to conform with the message type preferred by the bank in question. Furthermore, the portal includes extensive modular functionality enabling corporates to monitor counterparty and bank exposure, manage global bank limits and provide reports for credit and treasury departments all in real time." The Corporate Trade Finance Portal is available as a cloud-based, multi-tenant SaaS solution meaning no software installation is required on site and all users benefit from the ability to adapt quickly to new market requirements through centrally-managed software upgrades.

Read More

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