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How Banks Should Use Buy Now Pay Later To Increase Their Customer Base

Talha Tamboli | October 7, 2021 | 217 views

The Buy Now Pay Later (BNPL) phenomenon is gaining momentum around the world. BNPL services give consumers who do not have access to credit the ability to purchase goods and services with no deposit and to pay for goods and services over time. However, while banks, consumer credit providers and alternative credit providers will benefit from BNPL services, they also introduce challenges for financial regulators, existing providers in related markets and banks themselves.

Banks need to make sure that they are ready for a new type of competition. Larger retail banks seem to have added BNPL business to their portfolio already. Smaller banks will be forced to enter the market, either by acquiring a BNPL provider or rolling up the sleeves internally. In any case, it’s time that banks get rid of their prejudices and get on board with this consumer-friendly innovation that will ultimately benefit them by providing an influx of new customers, at least in the long run.

For a complete understanding of buy now pay later, we should first look at the traditional financing models that banks and fintechs use to lend credits. These financing technique is known as point-of-sale or POS. Let’s take a look on POS below.

 

How POS (Point-of-sale) Financing services work:

Traditional POS financing is a model that has been around for decades. Most consumers are familiar with its most basic form: pay now, pay later. With POS financing, a customer signs up for credit to buy a product, typically for a portion of its full price. Some POS financing programs require no down payment. Once the customer has made all payments, they become the owner of the goods.

POS financing works by financing the full price of the product, not a portion of the price. This means the customer pays the full purchase price of the item, plus interest. While POS financing has been popular for decades, it has faced some challenges. The payment model doesn't cater to customers who can't afford to pay the full purchase price upfront — these shoppers are often low-income or first-time-buyer customers. POS financing also requires shoppers to make large payments right away, which can be difficult for them.

“The banking “industry” is changing rapidly – almost on a daily basis. However, those changes are not affecting people as much as we may think, particularly the underserved and unbanked.”

-Steven Rosamilia, CEO at IMEX USA

How BNPL helps customers:

BNPL, or "buy now, pay later," payments enables customers to pay for their purchases over time, interest-free. BNPL payments don't appear on a customer's credit profile, so it doesn't affect their credit score. Here are some of the major points where BNPL helps customers:
  • BNPL payments give customers the ability to buy now and pay later without accruing interest. BNPL payments are typically not fixed and fluctuate based on a customer's ability to pay over time.
  • BNPL payments often appear in the form of layaway, credit extensions or installment loans.
  • BNPL payments may attract customers who want to own products but don't have the money upfront.
  • BNPL payments also work well for customers who want to spread out payments over time.


How BNPL is different than other POS lending services:

BNPL is an alternative payment technique offered by the payment service provider to businesses. Payment service providers use credit lines provided by banks and credit card companies to offer installment loans to customers.

Unlike conventional POS financing, BNPL focuses on consumers' ability to purchase a product rather than their ability to repay their loan. This is achieved by classifying consumers into different groups based on their creditworthiness and offering consumers an installment loan with payment periods that vary based on their creditworthiness. As a result, payment service providers use BNPL as a risk-based financing technique.

The payment service provider considers consumers' creditworthiness by classifying them into different consumer groups, such as "prime" consumers, "sub-prime" consumers, and "near-prime" consumers. These consumer groups are similar to credit profiles used by conventional credit card companies. With BNPL, businesses can request a payment profile classification from their business service provider.

The payment profile classification determines the installment loan payment schedule that the consumer receives. Businesses can request a payment profile classification from their business service provider. The payment profile classification determines the installment loan payment schedule that the consumer receives.

For checking your credit-worthiness before lending you BNPL, service providers may check consumer’s payment history, income, job stability, and other major factors. The financial service provider then use these factors to determine the installment loan payment schedule that the consumer receives.


What features BNPL brings to the table for Merchants:

Buy Now Pay Later is a new way to process payments. It's for young adults with shaky credit. The option lets merchants accept credit or debit cards but defer the payments.
It lets merchants offer customers a low payment schedule, typically 6 to 24 months. But it's different than payment plans. With BNPL, there's no interest, no hidden fees, and no penalties for not paying all at once.

BNPL works with all credit cards, not just Visa or MasterCard, and payments are processed securely through Authorized pages. BNPL increases conversion and sales by 20% for merchants while boosting average order value by 60%.

For customers, BNPL gives them access to the credit they otherwise wouldn't have. And for merchants, BNPL means more conversions, more sales and more repeat customers. BNPL is offered by a handful of digital storefronts, including Best Buy, Kohl's, and Walmart. But it's a new way of doing business that allows both parties to benefit from the deal (compared to 2.5 percent for a credit card transaction).


Why should Financial Institutions accept BNPL:

Amazon's Buy Now Pay Later (BNPL) program is both a blessing and a curse for retailers — a blessing as it offers them a way to boost sales by attracting shoppers who are price sensitive, and a curse because it threatens to erode bank's main business.

Amazon's BNPL program has only been around for two years, but it has already become a crucial part of the site's business model. The program gives people the option to buy products on Amazon with deferred payment terms. Customers purchase the product, but they aren't charged to agree to a 90-day payment plan until later.

While that's far less than the average credit card payment period — 25% of Americans carry credit card debt — BNPL has become popular enough with Amazon shoppers that it has shrunk Amazon's average purchase amount by $7.77, according to one report. That's a significant hit.

Amazon's BNPL program may be taking Amazon's main business, online sales, down a notch, but the banks that have issued BNPL cards aren't worried.

That's because BNPL cards, like credit cards, are financing. And financing today looks different than financing did even five years ago. Many consumers, especially Gen Z, prefer to buy with credit and postpone payments.

This shift in consumer preferences has major implications for banks. Banks issued financing to safe, creditworthy customers who wanted to buy now and pay later when credit cards were first introduced. But bank lending practices have changed over the years, and today many consumers use credit cards to finance products they might otherwise buy with cash.


How can Banks integrate BNPL in their lending services

BNPL is a fast-growing segment of the lending market. In 2015, BNPL made up 15.2% of all consumer credit originations and grew to $12.1 billion, according to the Federal Reserve Bank of New York.

BNPL's share grew from 8.4% in 2014 to 14.7% in 2015, according to Experian. A BNPL strategy allows banks to ride the wave of increased consumer debt by managing their balance sheet more aggressively. This helps stabilize revenues and boosts the profitability of loans as banks can charge higher interest rates.

While BNPL loans often come with hefty price tags, lenders can minimize their losses by structuring BNPL loans as an asset purchase rather than a loan sale. First, banks have to make sure they can fund the loans, either with their balance sheet or with funding from a non-bank lender. Second, banks have to decide whether the loan will be purchased directly or indirectly.

Cross River Bank is currently riding the BNPL trend with this model by providing Affirm with funding capacity. The model is safe as BNPL firms often purchase those loans after origination, but it also caps the potential gains banks can earn as the fee is often a small percentage of the total origination.

How can banks initiate marketing their buy now pay later services?

First, banks need to be agile and go after merchants that already have relationships with customers. Fintechs, on the other hand, must convince merchants that their service, regardless of its costs, is worth paying.

There are obviously some similarities. Both must win over merchants. But they also have different advantages. Fintechs don't have existing relationships or established customer bases, so they must build both from scratch.

Fintechs, however, have an advantage over banks in that they have the technology. In addition, fintechs can integrate their solutions into existing e-commerce systems, giving merchants an out-of-the-box, easy-to-deploy solution. This, in turn, makes fintech more attractive to merchants.

Fintechs can also target specific markets. For example, some banks sell online merchant accounts, but their service is often limited to larger merchants with more established distribution networks. Fintechs, on the other hand, can target smaller merchants, giving them an approach that's better suited to the needs of smaller businesses. Fintechs can also target specific niches. A fintech that targets small businesses, for example, could focus on those that sell high-priced goods online.

Fintechs don't have to build their distribution networks, either. Instead, they can use existing online channels like Amazon, eBay and Alibaba. Of course, fintechs can also sell directly to merchants, but this approach requires additional sales and marketing efforts.

Fintechs can also build their distribution networks. They can use a direct-to-consumer model, selling directly to their customers. This approach is best suited for fintech that is sells online merchant accounts and works for fintech that targets specific markets.


The Takeaway

BNPL programs have a critical role in financing trade and industry and financing small and medium-sized enterprises (SMEs). For this reason, BNPL programs should be an integral part of banks’ lending portfolios. Banks should optimize the utilization of BNPL programs.

At the same time, the regulatory framework for BNPL programs needs to be revised. The business models of BNPL programs should be standardized and standardized products should be available. At the same time, the regulatory framework for BNPL programs needs to be revised.


FAQs

What is buy now pay later?

Buy now pay later, as the name suggest, is an option Fintechs give you to purchase a product and pay for it after a certain amount of time. It works like a credit card payment, but it doesn’t charge you interest.

Does buy now pay later affect credit score?

No. Buy now pay later does not affect your credit score as long as you pay your dues timely. It is constructed in a way that you won’t have to worry about your credit score. However, banks may see your credit score before giving you BNPL service.

Why was I not eligible for buy now pay later?

Financial services or banks check your credit-worthiness before lending you the services of buy now pay later. They may check your payment history, income, job stability, etc. So before applying for BNPL, make sure you have a strong credit-worthiness.

What are the alternatives to buy now pay later?

You can use your credit card the same way as buy now pay later, but your interest-free days would only last till they bill you. You can also opt for interest free deals on purchases from e-commerce store.

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Now, let's examine digital transformation in the banking industry: 6.1 Authentic User Experience (UX) Banks must share genuine customer experiences to retain loyalty. To achieve this, they must embrace the latest trends, technologies, and well-designed UX. 6.2Blockchain Technology To improve customer satisfaction, banks must reduce the intermediaries between them and their customers. This can be accomplished through increased transparency using blockchain technology, enabling untrusted parties to agree on a shared database and eliminating the need for transaction intermediaries. 6.3 Personalized Technical Services Key points about the benefits of personalized services such as automation, AI, and cloud computing in the banking industry: Automation minimizes human intervention and reduces errors, resulting in faster and more efficient service. AI helps banks predict outcomes based on past data, such as identifying fraud and making customer recommendations. Cloud computing enables banks to adopt new business models and create secure applications that meet regulatory requirements. About 27% of Americans use an online-only bank. Of those at online-only banks, 88% reported they are satisfied with the bank’s services. Meanwhile, only 66% of consumers using traditional banks report being satisfied with them. (Source: Bankrate) 7. Digital Banking Platforms Reaching Out to SMBs Digital banking platforms have revolutionized business operations by providing enhanced convenience and adaptability. Fintech firms have customized their platforms to meet the unique needs of small and medium-sized businesses (SMBs), offering mobile apps that facilitate financial management, transaction processing, and access to a range of financial tools and services at all times and from any location. The following is a list of notable digital banking applications that have garnered significant popularity over time: Betterment: It is an online financial advisor that offers personalized, fiduciary advice for retirement planning, building wealth, and achieving financial goals. By utilizing advanced algorithms and technology, it offers automated investment services that are tailored to each client's unique investment objectives and risk tolerance. The platform offers a diverse range of investment options, low fees, tax-efficient investing, and access to financial advisors. Betterment's mission is to make investing accessible and affordable to everyone, with a user-friendly online platform that is easy to use and offers high-quality investment advice. Mercury: It is a startup-focused banking platform that provides a comprehensive range of financial services tailored to companies of any size or stage. The platform offers free checking and savings accounts, debit and credit cards, domestic and international wire transfers, treasury and venture debt, and other essential financial products, all with an intuitive user experience. In addition to its suite of banking services, Mercury also provides vibrant community programs that offer founders the resources, advice, and connections needed to build successful companies. Bluevine: It is a financial technology company that specializes in providing working capital financing solutions tailored to small and medium-sized businesses (SMBs) in the United States. With a suite of financing products, including invoice factoring, lines of credit, and term loans, Bluevine enables SMBs to secure the necessary funding to drive growth and expansion. The company's platform is designed to facilitate a seamless lending experience, with streamlined applications and fast approvals that can be completed in as little as 10 minutes. Novo: New York-based fintech firm, Novo offers digital banking services to small businesses in the United States. Its suite of products includes mobile check deposit, online bill pay, and debit card issuance for employees. The company has also integrated with popular small business software tools such as QuickBooks and Xero, providing businesses with greater financial management capabilities. Relay: Relay is an online banking and money management platform dedicated to giving America's small businesses the tools they need to grow and gain visibility into their finances. The company recognizes that traditional banking services often underserve small businesses. As a result, it has built a platform that gives entrepreneurs the power to control their cash flow by giving them a clear picture of their income and expenses. 8. Future Aspects of Digital Banking Solutions As technology continues to advance, the traditional banking system is expected to undergo significant changes in the coming decades, with neobanks rapidly gaining popularity among tech-savvy customers for their personalized services. These digital fintech companies, often referred to as 'challenger banks', operate without physical branches and offer a range of attractive services, blurring the line between traditional banking and financial systems. As a result, retail banks may adopt an omnichannel approach and leverage the robust infrastructure of fintech enterprises to enhance the customer experience.

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

Article | February 11, 2020

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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CORE BANKING

A Guide to Banking in the Metaverse: Part 2

Article | July 14, 2022

Digital bank accounts, offered by online-savvy institutions, provide security and scalability in transactions. These seamlessly integrate with tools such as accounting software and payment gateways. Contents 1. Introduction 2. Positive Aspects of Digital Bank Accounts 3. Streamlining Financial Management with Digital Bank Accounts 4. Implementing Digital Bank Accounts in a Financial Management System 5. Best Practices in Using Digital Bank Accounts 6. Final Thoughts 1. Introduction Digital bank accounts are primarily designed for businesses and are offered by financial institutions with a strong focus on online and digital banking services. These accounts provide improved security features, flexible transaction volumes, as well as low costs, and can be easily integrated with other business tools, such as accounting software and payment gateways. “By partnering with fintech startups, banks will give their account holders the right measure of security and speed. Account holders can know that their money is safe, and they can enjoy the latest financial technology. This is the way to become a digital bank.” (Source: Chris Skinner) 2. Positive Aspects of Digital Bank Accounts Digital business bank accounts provide a range of benefits for businesses, including improvements in financial management processes, time and cost savings, and increased security. Key advantages of these accounts include: Accessibility: Businesses can access and manage their digital business bank accounts from any location and at any time without physically visiting a bank branch, enabling them to carry out transactions with greater flexibility and efficiency. Streamlined Financial Management: These allow businesses to manage their finances more efficiently by providing access to the best online banking accounts such as real-time transaction monitoring and account reconciliation. Cost-effective: Some digital savings accounts offer low transaction fees or even fee-free transactions, making them an attractive option for businesses looking to save on costs. It's mostly beneficial for businesses with high transaction volumes, as they can significantly reduce their expenses. Enhanced Security: Digital bank accounts come with advanced security features such as two-factor authentication and real-time monitoring of transactions, providing businesses with increased protection against fraud and cyber threats. This feature can help companies to avoid financial losses due to fraudulent activities. Integration with Other Business Tools: Digital bank accounts can be easily integrated with other business tools, such as accounting software and payment gateways. This feature allows for seamless financial management and automation, improving the efficiency and accuracy of financial operations. 3. Streamlining Financial Management with Digital Bank Accounts With digital bank accounts, businesses can easily integrate their banking activities with their accounting software, making it easier to manage financial data, reduce errors, and make informed financial decisions. Faster payment processing and real-time financial data also enable businesses to improve their cash flow management. Digital Accounting Systems: Businesses can easily integrate their bank account transactions with their accounting software, automatically recording financial data, saving time, and reducing errors. Expedited Payments: Digital bank accounts can facilitate faster payments through features such as real-time transfers, which can be particularly beneficial for businesses that need to pay suppliers or receive payments from customers quickly. Automated Invoicing and Collections: Many digital bank accounts offer online invoicing and payment processing, allowing businesses to create and send invoices to customers electronically and receive payments directly into their bank accounts. Financial Visibility: Digital bank accounts often give businesses real-time access to their financial data, including account balances, transaction histories, and spending trends. It can help companies make more informed financial decisions. Cost-cutting: Digital bank accounts are often less expensive than traditional ones, with lower fees and fewer account requirements. This can be helpful for small and medium-sized businesses that have a limited amount of money to spend on banking services. 4. Implementing Digital Bank Accounts in a Financial Management System Digital bank accounts facilitate easy transfer of funds between accounts and enable payments to suppliers and vendors, resulting in streamlined cash flow management. They also minimize the risk of fraud and errors since transactions are automatically recorded and monitored by the bank and accounting software, reducing the need for manual data entry and decreasing the chance of errors. These help manage cash flow by providing real-time information about incoming and outgoing funds, enabling businesses to make informed decisions about payments and investments. These also allow the transfer of funds between accounts, useful during times of low cash reserves or unexpected expenses. Digital bank accounts enable the establishment of automatic payment schedules to ensure timely bill payments, avoid late fees, and maintain a positive cash flow while avoiding business disruptions. Companies can implement digital bank accounts by choosing a reputable digital bank, integrating it with their accounting software or enterprise resource planning (ERP) system, and establishing internal controls and security measures to protect financial data. Proper implementation and management of digital bank accounts can give businesses a competitive advantage in today's fast-paced and digital business environment. 5. Best Practices in Using Digital Bank Accounts When it comes to using digital bank accounts for B2B transactions, there are a few additional best practices to consider in order to run businesses more efficiently: Use a Dedicated Account: While using digital bank accounts for B2B transactions, it's a good idea to use a dedicated digital savings account separate from other business accounts. This can help keep track of transactions and simplify accounting and tax reporting. Automate Payments: Many digital banks offer automation tools that can help schedule recurring payments and streamline payment processes. It can help reduce errors and save time. Set Transaction Limits: To reduce the risk of fraud or unauthorized transactions, set transaction limits on the digital bank account, thereby limiting the amount of money that can be transferred without authorization. Use Invoicing Tools: Some digital banks offer invoicing tools to help create and send invoices to clients or vendors. This can help in managing accounts payable and accounts receivable more efficiently. Monitor Cash Flow: Regularly monitoring cash flow can identify potential cash flow issues before they become a problem. Many digital banks offer cash flow management tools to help monitor cash flow in real time. Use Multiple Accounts: Depending on the size of the business and the volume of transactions, using various digital bank accounts can be considered to manage different aspects of the business, thus, segregating funds and simplifying accounting and reporting. 6. Final Thoughts Digital bank accounts have emerged as a powerful tool for businesses seeking to streamline financial management. Looking ahead, the future of digital bank accounts is bright. As technology advances and the adoption of digital banking services increases, digital bank accounts will become even more efficient and user-friendly. Furthermore, integrating other financial tools and services into digital banking platforms will offer more streamlined financial management solutions. By selecting a reliable digital bank, ensuring account security, keeping track of transactions, utilizing budgeting resources, and comprehending applicable fees and charges, businesses can reap the advantages of the best online banking for small businesses. The best digital business bank accounts are poised to become even more essential tools for businesses looking to optimize their financial management and achieve greater success.

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PAYMENTS

3 Upcoming Trends to Look Out for in Digital Payments

Article | July 21, 2022

Multichannel payment processing is vital for increasing efficiency & profitability. Merchants can accept payments from all channels with single account, eliminating need for multiple merchant IDs. Contents 1. Introduction 2. Maximizing Revenue: Cross-Selling and Upselling Strategies 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives 4. Leveraging Data Analytics for Multichannel Banking Optimization 5. Striking Balance between Convenience and Security 6. Multichannel Banking Evolution: Trends and Insights 7. Future Scope 1. Introduction Integrating multichannel banking solutions for a seamless customer experience remains a challenge in today’s digital era as financial institutions and banks are expected to provide services through ATMs, online banking, mobile, and in-branch. To boost efficiency and profitability, adopting multichannel payment processing is crucial. Technology enables merchants to process payments from all channels using a single account, thus, eliminating the need for multiple merchant IDs. Consolidating online sales into one location streamlines business processes, reduces card network fees, and leads to significant cost savings. 2. Maximizing Revenue: Cross-selling and Upselling Strategies Banks and financial institutions can effectively promote their multiple products and services to customers based on their needs, behavior, or demographics. Cross-selling and upselling techniques can encourage customers to hold multiple products, which can lead to business growth, new client acquisition, and increased customer lifetime value. Cross-selling involves offering related products or services to existing customers, such as promoting credit cards and internet banking to savings or current account holders. On the other hand, upselling involves increasing the amount invested in an existing or additional product. Both techniques can significantly boost sales, and revenue, and help achieve business objectives. 3. Optimizing B2B Operations: Multichannel Banking and Cash Management Solutions The evolving demands of corporate clients, rising competition from fintech companies, and the emergence of cutting-edge technologies are providing banks with a distinct prospect to revamp their cash management services and capabilities. 3.1 Digitizing Cash Management in Multichannel Banking: Key Imperatives Unlocking the Benefits of Collaboration Fintechs are becoming highly sought-after collaborators due to their product innovation, which enables banks to offer new and compelling services, solutions, and products that aid in attracting and retaining cash management clients. Tech & Alliances for Dynamic Cash Ecosystem Using innovative technologies and services, a cash management approach focuses on delivering cash efficiency and effectiveness to clients. New alliances and data-driven insights create a thriving ecosystem. Omnichannel Architecture In an omnichannel world, architecture plays a crucial role in delivering a seamless customer experience. While the traditional multichannel approach offers diverse touchpoints, it can also lead to a sub-optimal customer experience. Harnessing Real-time and Predictive Analytics In the realm of cash management, banks are increasingly relying on predictive analytics to mitigate risks, underwrite loans, and detect fraud. However, the potential advantages of real-time analytics for both cash management customers and the banks that cater to them are even more extensive. Integrate Cloud Services Compared to conventional decentralized cash management systems, cloud-based systems offer a greater degree of process and control uniformity in all scenarios, bolstering their resilience against potential capacity limitations stemming from factors such as remote work setups, cyber threats, and sudden surges in transaction volume. 4. Leveraging Data Analytics for Multichannel Banking Optimization Data-driven organizations are 23 times more likely to acquire customers, 6 times more likely to retain those customers, and 19 times more likely to be profitable (Source: McKinsey Global) Using data analytics, banks can gain insights into customer behavior, preferences, and patterns across channels. This helps identify customer needs, optimize channel usage, and personalize the banking experience. Predictive analytics can proactively offer relevant solutions to customers through their preferred channels, improving satisfaction. Banks can also optimize channel offerings by identifying the most effective channels for different customer segments, such as mobile banking for younger customers and branches for older customers. 5. Striking Balance between Convenience and Security Multichannel banking has revolutionized the way customers interact with their banks. With the advent of digital banking, customers can now carry out a wide range of transactions using multiple channels such as mobile apps, online banking, ATMs, and branches. While this has made banking more convenient, it has also created new security challenges for banks. Here are some key considerations that banks should keep in mind when implementing a multichannel banking strategy: Multi-factor Authentication: Multi-factor authentication is a crucial security measure that can help prevent unauthorized access to customer accounts. Banks can implement multi-factor authentication by requiring customers to provide two or more authentication factors such as a password, fingerprint, or facial recognition. Fraud Detection and Prevention: Banks should have robust fraud detection and prevention systems in place to identify and prevent fraudulent transactions. These systems should be designed to detect suspicious activities such as large withdrawals, multiple failed login attempts, and transactions from unusual locations. Encryption: Encryption is a critical security measure that can protect sensitive data such as customer account information and transaction details. Banks should ensure that all customer data transmitted through their multichannel banking platforms is encrypted to prevent interception by hackers. Training and Education: Banks should provide regular training and education to customers on how to use their multichannel banking platforms securely. This can include educating customers on how to create strong passwords, recognizing and reporting phishing scams, and using public Wi-Fi safely. Customer Support: Banks should have robust customer support systems in place to help customers with any issues related to their multichannel banking platforms. This can include providing support through multiple channels such as phone, email, and live chat. 6. Multichannel Banking Evolution: Trends and Insights As financial institutions continue to adjust to the ever-changing needs and preferences of their customers, it is imperative to remain informed about the latest trends and insights in multichannel banking. These critical trends and insights have played a pivotal role in shaping its evolution: Rise of Mobile Banking: The use of mobile banking apps has surged in recent years, with many customers preferring to use their smartphones for banking transactions. As a result, banks are investing in the development of robust mobile banking apps to cater to this demand. Integration of AI and Automation: Banks are increasingly using artificial intelligence (AI) and automation to streamline their operations and improve the customer experience. Chatbots and virtual assistants, for example, can provide customers with quick and personalized responses to their queries. Greater Emphasis on Data Analytics: Banks are using data analytics to gain insights into customer behavior and preferences. By analyzing customer data, banks can develop targeted marketing campaigns and offer personalized recommendations to customers. Expansion of Digital Payment Options: The growth of digital payment options such as mobile wallets and peer-to-peer (P2P) payment apps is driving the evolution of multichannel banking. Banks are partnering with fintech companies to offer these services and stay competitive in the market. Adoption of Blockchain Technology: Banks are exploring the use of blockchain technology to improve security, transparency, and efficiency in their operations. For example, blockchain can be used to facilitate cross-border payments and reduce the need for intermediaries. 7. Future Scope With advancements in technology, financial institutions can continue to offer new and innovative channels to improve the customer experience. The use of artificial intelligence and chatbots is expected to increase, allowing customers to interact with their bank through voice and text commands. The integration of internet of things (IoT) devices with banking channels is another area of potential growth. For instance, customers could use their smartwatches to make payments or check account balances. Additionally, blockchain technology has the potential to revolutionize the way banks handle transactions, reducing the risk of fraud and improving the speed and efficiency of transactions. As financial institutions continue to adapt to the changing needs and preferences of their customers, multichannel banking will play a crucial role in delivering a seamless and personalized customer experience.

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SECURITY AND COMPLIANCE

Protecting Modern Consumers from Banking Fraud

Article | August 4, 2022

Digital banking altered the way businesses manage their finances, rendering the once cumbersome processes of physical branch visits and lengthy lines for account opening and money transfers obsolete. Contents 1. Evolution of Banking: From Brick-and-mortar to Digital 2. Multichannel Banking and Self-service Solutions 3. Demystifying Retail, Business and Corporate Banking 4. Mobile Banking: Payment Processing Overhaul 4.1 Overview of Fintech Companies in Banking Industry 5. Technology Trends in Digital Banking 6. Digital Transformation in Banking 6.1 Authentic User Experience 6.2 Blockchain Technology 6.3 Personalized Technology Services 7. Digital Banking Platforms Reaching out to SMBs 8. Future Aspects of Digital Banking Solutions 1. Evolution of Banking: From Brick-and-mortar to Digital Digital banking has transformed the traditional banking landscape and brought about a paradigm shift in the way individuals and businesses manage their finances. The cumbersome and time-consuming nature of financial transactions that involved physical visits to bank branches and long queues for basic tasks like account opening and money transfers is now a thing of the past. Between 2017 and 2021, 9% of all branch locations closed down, a loss of around 7,500 branches, according to the non-profit National Community Reinvestment Coalition (NCRC). (Source: Bankrate) With the digitization of banking, there has been a shift toward a cashless economy, with net and mobile banking gaining popularity over physical cash. With digital banking solutions like UPI, internet banking, and mobile banking, customers can access global transaction banking services directly from their own platforms, enabling seamless transactions anytime, anywhere. 2. Multichannel Banking and Self-Service Solutions The shift from traditional brick-and-mortar banking to digital banking has become ubiquitous, making self-service approaches in digital banking solutions vital for customers. These options allow customers to access banking solutions using software resources without human intervention, enabling them to conduct transactions such as checking account balances, making online transfers and withdrawals, paying bills, loan installments, exchanging currencies, and overall managing wealth with ease. Such solutions can be accessed through FAQs, chatbots, customer support portals, and other similar resources. The scope of self-service technology also encompasses internet banking and online shopping. Although the first and most successful self-service solution introduced by banks worldwide was the automated teller machine (ATM), the concept has now been extended to include a variety of digital banking platforms and applications. 3. Demystifying Retail, Business and Corporate Banking Digital banking services and products consist of three main sub-categories: Retail banking, Business banking, and Corporate banking. Retail banking, also referred to as consumer banking or personal banking, is a form of banking that offers financial services specifically to individual customers instead of businesses. It enables customers to effectively manage their finances, access credit facilities, and securely deposit their funds. Business banking refers to a company's financial transactions with a specialized institution that offers tailored financial services such as business loans, credit, savings accounts, and checking accounts, exclusively designed for corporate entities rather than individuals. This type of banking is conducted by a dedicated business banking division within a bank, which solely caters to the financial needs of commercial organizations. Corporate banking entails the provision of financial services to sizable corporations and multinational enterprises, which includes an array of offerings such as cash management, trade finance, corporate lending, and treasury services. With the advent of digital corporate banking, businesses can now effectively manage their financial transactions, process payments, and gain access to various financial tools and resources via digital platforms, ensuring improved efficiency and convenience. 4.Mobile Banking: Payment Processing Overhaul Mobile banking allows remote access to a wide range of banking services. Mobile app simplifies our lives by letting bank and other financial institution users check account balances, pay bills, transfer money, manage investments, and apply for loans with just a few clicks. Mobile banking alerts promote smart financial management, provide customization options, and enable easy monitoring for suspicious activity. A Chase Bank study revealed that 87% of consumers use their bank's mobile app monthly. Some features of a digital banking platform: Transfer money to friends and family within minutes via the ‘Manage Payee’ option on mobile banking apps. Clear utility bills via banks linked with UPI-enabled apps on your phone instead of standing in long queues outside gas stations with cash. Open Demat accounts online via the KYC process and manage all investments, deposits, and stocks in one place. Open bank accounts by uploading documents online; skip visiting banks and filling out forms. Get online assistance from banks 24/7 through chatbots and support systems. Mobile banking enables smooth functioning and boosts transparency in accessing financial data. Check account balances anytime without the need for passbook slips. Mobile banking apps provide customers with innumerable loan options, with banks deducting loan amounts from accounts on a fixed date via the ‘AutoPay’ option. 4.1 Overview of Fintech Companies in Banking Industry Here are some leading digital banking platforms catering to the needs of financial institutions: Alkami Technology: It is a major developer of cloud-based digital banking solutions for financial institutions in the United States. Its solutions enable users to clients their businesses with confidence, react to changing circumstances swiftly, and build vibrant digital communities. The company provides a range of services, including retail banking and business banking, digital account opening, loan origination, and multi-payment fraud protection solutions to assist clients in their transformation. It is dedicated to empowering its clients and supporting them in achieving their goals. Numerated: It is a fast-growing fintech that streamlines the origination process for business banking products. Over 400,000 businesses and 30,000 financial institution associates have processed $50 billion in lending using Numerated. The platform is used by financial institutions with a combined $1 trillion in assets, including Bremer Bank, Dollar Bank, Eastern Bank, MidFirst Bank, People's United Bank, Seacoast Bank, and others. The company has been recognized for its work as one of 2020's Top 250 FinTechs by CB Insights and 2021's Best Overall Business Lending Company by FinTech Breakthrough. Zoot Enterprises: It is a global leader in providing advanced origination, acquisition, and decision management solutions to financial institutions. Its cloud-based platforms offer flexibility for specific business needs, including loan origination, fraud detection, and data acquisition. Zoot enables clients to access hundreds of cutting-edge data sources in real time, delivering decisions in milliseconds. Its origination solution streamlines loan processing, providing powerful tools and robust integrations that reduce data entry, accelerate loan processing times, and avoid costly errors. Geezeo: The company delivers enriched digital banking experiences, processing, and augmenting transactions for over 500 financial institutions. Its insights enhance the overall customer experience, seamlessly integrating within online and mobile banking environments while allowing financial institutions to maintain ownership of their personal financial management (PFM) brand. It focuses on technology solutions that engage audiences with enriched data and offers expertise in digital banking, marketing, and technology. TurnKey Lender: It is a global leader in Unified Lending Management (ULM). Its intelligent software products automate the entire lending process, including traditional and alternative lending, SME financing, grant management, money lending, leasing, trade finance, in-house financing, and more. With customers in over 50 countries, TurnKey Lender is gaining traction as a pioneer in AI software development for lenders in regions like the United States, APAC, and the EU. The company’s solutions are used by all types of lenders, including large/mid-size banks, digital lenders, multi-finance companies, trade finance operators, traditional and non-traditional lenders, and telecoms. 5. Technology Trends in Digital Banking Banking technology is rapidly evolving. Advanced technologies like AI and ML will enable banks to analyze large data sets in real time and offer personalized solutions to customers. The market size of the global digital banking platform was valued at USD 20.8 billion in 2021 and is expected to expand at a CAGR of 20.5% from 2022 to 2030. (Source: Grand View Research) The increasing digital savviness of the global population is prompting the adoption of technological advancements. However, some individuals are still in an adaptive mode due to a lack of time and knowledge. AI and ML technologies enable banks to analyze large amounts of data, make informed decisions through predictive analysis, and improve lending patterns by analyzing consumer spending patterns. 6.Digital Transformation in Banking Financial institutions must leverage big data to automate business processes and reduce costs in light of falling interest rates and banking fees coupled with rising consumer demands. Adopting artificial intelligence, cloud technology, and automation in modernizing their applications could enable banks to develop omnichannel products, services, and capabilities, ultimately improving the user experience. Now, let's examine digital transformation in the banking industry: 6.1 Authentic User Experience (UX) Banks must share genuine customer experiences to retain loyalty. To achieve this, they must embrace the latest trends, technologies, and well-designed UX. 6.2Blockchain Technology To improve customer satisfaction, banks must reduce the intermediaries between them and their customers. This can be accomplished through increased transparency using blockchain technology, enabling untrusted parties to agree on a shared database and eliminating the need for transaction intermediaries. 6.3 Personalized Technical Services Key points about the benefits of personalized services such as automation, AI, and cloud computing in the banking industry: Automation minimizes human intervention and reduces errors, resulting in faster and more efficient service. AI helps banks predict outcomes based on past data, such as identifying fraud and making customer recommendations. Cloud computing enables banks to adopt new business models and create secure applications that meet regulatory requirements. About 27% of Americans use an online-only bank. Of those at online-only banks, 88% reported they are satisfied with the bank’s services. Meanwhile, only 66% of consumers using traditional banks report being satisfied with them. (Source: Bankrate) 7. Digital Banking Platforms Reaching Out to SMBs Digital banking platforms have revolutionized business operations by providing enhanced convenience and adaptability. Fintech firms have customized their platforms to meet the unique needs of small and medium-sized businesses (SMBs), offering mobile apps that facilitate financial management, transaction processing, and access to a range of financial tools and services at all times and from any location. The following is a list of notable digital banking applications that have garnered significant popularity over time: Betterment: It is an online financial advisor that offers personalized, fiduciary advice for retirement planning, building wealth, and achieving financial goals. By utilizing advanced algorithms and technology, it offers automated investment services that are tailored to each client's unique investment objectives and risk tolerance. The platform offers a diverse range of investment options, low fees, tax-efficient investing, and access to financial advisors. Betterment's mission is to make investing accessible and affordable to everyone, with a user-friendly online platform that is easy to use and offers high-quality investment advice. Mercury: It is a startup-focused banking platform that provides a comprehensive range of financial services tailored to companies of any size or stage. The platform offers free checking and savings accounts, debit and credit cards, domestic and international wire transfers, treasury and venture debt, and other essential financial products, all with an intuitive user experience. In addition to its suite of banking services, Mercury also provides vibrant community programs that offer founders the resources, advice, and connections needed to build successful companies. Bluevine: It is a financial technology company that specializes in providing working capital financing solutions tailored to small and medium-sized businesses (SMBs) in the United States. With a suite of financing products, including invoice factoring, lines of credit, and term loans, Bluevine enables SMBs to secure the necessary funding to drive growth and expansion. The company's platform is designed to facilitate a seamless lending experience, with streamlined applications and fast approvals that can be completed in as little as 10 minutes. Novo: New York-based fintech firm, Novo offers digital banking services to small businesses in the United States. Its suite of products includes mobile check deposit, online bill pay, and debit card issuance for employees. The company has also integrated with popular small business software tools such as QuickBooks and Xero, providing businesses with greater financial management capabilities. Relay: Relay is an online banking and money management platform dedicated to giving America's small businesses the tools they need to grow and gain visibility into their finances. The company recognizes that traditional banking services often underserve small businesses. As a result, it has built a platform that gives entrepreneurs the power to control their cash flow by giving them a clear picture of their income and expenses. 8. Future Aspects of Digital Banking Solutions As technology continues to advance, the traditional banking system is expected to undergo significant changes in the coming decades, with neobanks rapidly gaining popularity among tech-savvy customers for their personalized services. These digital fintech companies, often referred to as 'challenger banks', operate without physical branches and offer a range of attractive services, blurring the line between traditional banking and financial systems. As a result, retail banks may adopt an omnichannel approach and leverage the robust infrastructure of fintech enterprises to enhance the customer experience.

Read More

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

Article | February 11, 2020

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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JHL Capital Group LLC

JHL Capital Group is a registered investment adviser founded in 2006. Our goal is to deliver superior risk-adjusted investment returns to our partners. Our partners include high net worth individuals, endowments, foundations, pensions, sovereign wealth funds and other institutional investors. We invest alongside our partners. Our team of professionals has global financial markets experience across all asset classes. We foster a culture of operational excellence, transparency and compliance.

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CORE BANKING, DIGITAL BANKING

Hanover Bank Opens Business Banking Center in Hauppauge, Long Island

Globenewswire | May 23, 2023

Hanover Bancorp, Inc. (Nasdaq: HNVR) (the "Company"), parent company of Hanover Community Bank (the “Bank”), announced today that it expanded the Company’s geographic footprint with the opening of its ninth location at 410 Motor Parkway, Hauppauge, New York. “This is an important milestone for us. We are thrilled to be a part of Suffolk County and look forward to serving the banking needs of so many vibrant businesses and residents through our commercial, municipal, and retail banking products and services,” said Michael P. Puorro, Chairman & Chief Executive Officer. “The recent unrest and robust consolidation activity within our industry has created substantial voids in the quality and level of service available to many businesses, and we are eager to bring our banking solutions and highly personalized service to eastern Long Island. We are confident there is enormous growth potential in this vital and underserved market, and we will capitalize on these opportunities. As a financially strong and stable institution, we expect to create value for all our stakeholders by supporting our clients, becoming an integral part of this economic hub, and growing together with our clients.” Hanover Community Bank is a premier financial institution that treats its clients’ needs as the first priority. Our state-of-the-art Hauppauge location will support a full range of online and in-person banking solutions, with a focus on serving the unique needs of small to medium-sized businesses and consumers throughout the region. “We are hiring locally and are so proud to be working with the incredibly talented workforce that exists in the area. We look forward to supporting the many families as well as the countless thriving commercial and small businesses that call this area home” said Mac Wilcox, President. “Our relationship-based philosophy of banking is the cornerstone of our commitment to serve Suffolk County and assist our clients in reaching their financial goals.” With our dedicated team of local professionals already working with clients in and around Hauppauge, we are seeing strong demand for our deposit and lending solutions and are excited about our continued growth throughout Suffolk County. “Customer enthusiasm for Hanover Bank’s expansion in Suffolk County has been extremely positive, and we look forward to building on this momentum as we grow with our expanding customer base,” concluded Mr. Puorro. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is a bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover employs a complete suite of consumer, commercial, and municipal banking products, and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

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FINANCIAL MANAGEMENT, WEALTH MANAGEMENT

Tactive Advisors selects FamilyWealth™ Platform

Globenewswire | May 22, 2023

FinTech Automation (“FTA”) announced today that Tactive Advisors has licensed FTA’s UniFi core banking and WealthTech applications that will be used as the technology infrastructure for the Tactive WealthTech Platform. The partnership enables Tactive to further develop their technology strategy of a unified wealth management platform to include insurance, banking, and alternative solutions that offers a holistic financial services platform to its financial advisor partners and their clients. The FinTech Automation Infrastructure-as-a-Service will be the foundation of the Tactive Platform to assist their advisors truly compete in a financial services market increasingly dominated by larger financial institutions. David Joon Park, Founder and CEO of FinTech Automation said, “Independent financial advisors have always done a good job of offering high-touch service to their clients but have been incapable of offering a combined banking and wealth management solution while maintaining their ability to remain independent. With the Tactive platform, it will create a formidable holistic financial services platform their advisors can harness to offer truly unbiased financial solutions to solve client needs.” Joe Gissy, Founder and CEO of Tactive, added, “The Tactive Platform was specifically designed to support advisors through a comprehensive tech stack enabling them to scale their business, and by incorporating FinTech Automation’s Infrastructure-as-a-Service, we will continue to disrupt the current financial advisory space and lead in the new evolution in WealthTech.” About FinTech Automation FinTech Automation is a Dallas-based Fintech as-a-Service and Infrastructure as-a-Service platform that enables digital transformation for financial institutions. The Platform consists of FTA’s proprietary UniFi Banking, Trust, and Wealth Management core, UniFi 13 micro-service-based applications, AccelerationCloud middleware application, ModernRails payments network for card issuance, payments, deposits, and payments gateway, and FamilyWealth our suite of WealthTech applications. The FinTech Automation Platform is uniquely built for banks, FinTechs, and financial institutions offering bank sponsorship, Banking as-a-Service (BaaS), AdviserTech, and embedded finance. About Tactive Founded in 2021, Strategy Marketplace, dba Tactive, is an SEC-Registered Investment Advisor (RIA) with an award-winning WealthTech platform. Its mission is to level the financial playing field by giving advisors an integrated comprehensive financial service platform to serve their clients individual and business needs. Tactive was named winner of the WealthManagement.com Industry Awards for Outstanding Achievement in Digital Advisors in the “Robo” category. They were also named to the 2023 WealthTech Top 100 and nominated in 2022 for top TAMP platform from the Wealth Management Industry Awards.

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FINANCIAL MANAGEMENT, DIGITAL BANKING

Abrigo unveils new AI-driven banking intelligence capabilities at ThinkBIG conference

PRnewswire | May 17, 2023

Abrigo, a leading provider of growth and risk management software for U.S. banks and credit unions, recently announced significant improvements to Abrigo Connect, the company's banking intelligence solution. Abrigo Connect now includes new artificial intelligence (AI) capabilities for ease of use and new role-based products to help leaders make strategic and operational decisions. The functionality was revealed at Abrigo's ThinkBIG conference in Miami last week, where 600 attendees convened for thought leadership and Abrigo product innovation. Introduced in 2020, the Abrigo Connect platform curates relevant information to quickly deliver intuitive and actionable dashboards across lending, credit risk, financial crime management, enterprise risk, and banking operations. These dashboards give financial leaders insights into institutional performance, opportunities for growth, and employee efficiency. "Banking leaders have to do more with less given the economy, and they need real-time information to optimize decisions around resources, loan growth, and risks. Abrigo Connect can close that information gap quickly, without months' long implementations or complex data stacks," explained Ravi Nemalikanti, Abrigo Chief Technology Officer. Abrigo Connect features a new user interface powered by ThoughtSpot Everywhere. It uses AI, GPT-3.5, and natural language search capabilities so bankers can find their data using the words they speak everyday – improving the speed and quality of results. "Companies that are building their businesses on data, both internally and in their offerings for customers, will realize unprecedented competitive advantages. It makes us immensely proud to be empowering a global community of data-driven companies, like Abrigo, that are using ThoughtSpot to build sticky products that deliver business impact and extend analytics to their customers that deliver a modern data experience," said Sumeet Arora, Chief Development Officer at ThoughtSpot. "Abrigo is driving innovation in the banking sector with AI-Powered analytics, and we're thrilled to be an innovation partner in differentiating their platform with a bespoke analytics experience and in delighting their end users." Abrigo supports 2,400 financial institutions through lending, portfolio risk, and financial crime management automation. Leveraging its customer network, the company has built a proprietary database of banking data for exclusive benchmarking within Abrigo Connect. While many financial institutions grapple with a talent shortage, they may also struggle to source or fund an in-house data science team. Similarly, many community institutions lack resources dedicated to data warehousing to power general business intelligence systems. Abrigo Connect uses information already flowing through the Abrigo Platform to sidestep lengthy, expensive data integration projects and yield immediate access to curated data. Later this year, Abrigo will also integrate additional data sources for richer analysis. The Abrigo Platform, including Connect, provides unlimited user access, allowing financial institutions to add users as their usage of data analytics expands. Bankers can have confidence in the security and expediency of data flows through Abrigo, knowing the company has integrated to more than 50 unique core systems across thousands of successful technology implementations. About Abrigo Abrigo is a leading provider of compliance, credit risk, lending, and asset/liability management solutions and services that help financial institutions thrive. Abrigo accelerates growth, increases client efficiency, and improves customer experience with an easy-to-use and expansive platform. We ensure customer success with our award-winning client service team, advisory expertise, and innovative technology. With a network of 2,400+ FIs, Abrigo offers unique opportunities for insightful peer benchmarks and best practices. Visit abrigo.com to learn more.

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CORE BANKING, DIGITAL BANKING

Hanover Bank Opens Business Banking Center in Hauppauge, Long Island

Globenewswire | May 23, 2023

Hanover Bancorp, Inc. (Nasdaq: HNVR) (the "Company"), parent company of Hanover Community Bank (the “Bank”), announced today that it expanded the Company’s geographic footprint with the opening of its ninth location at 410 Motor Parkway, Hauppauge, New York. “This is an important milestone for us. We are thrilled to be a part of Suffolk County and look forward to serving the banking needs of so many vibrant businesses and residents through our commercial, municipal, and retail banking products and services,” said Michael P. Puorro, Chairman & Chief Executive Officer. “The recent unrest and robust consolidation activity within our industry has created substantial voids in the quality and level of service available to many businesses, and we are eager to bring our banking solutions and highly personalized service to eastern Long Island. We are confident there is enormous growth potential in this vital and underserved market, and we will capitalize on these opportunities. As a financially strong and stable institution, we expect to create value for all our stakeholders by supporting our clients, becoming an integral part of this economic hub, and growing together with our clients.” Hanover Community Bank is a premier financial institution that treats its clients’ needs as the first priority. Our state-of-the-art Hauppauge location will support a full range of online and in-person banking solutions, with a focus on serving the unique needs of small to medium-sized businesses and consumers throughout the region. “We are hiring locally and are so proud to be working with the incredibly talented workforce that exists in the area. We look forward to supporting the many families as well as the countless thriving commercial and small businesses that call this area home” said Mac Wilcox, President. “Our relationship-based philosophy of banking is the cornerstone of our commitment to serve Suffolk County and assist our clients in reaching their financial goals.” With our dedicated team of local professionals already working with clients in and around Hauppauge, we are seeing strong demand for our deposit and lending solutions and are excited about our continued growth throughout Suffolk County. “Customer enthusiasm for Hanover Bank’s expansion in Suffolk County has been extremely positive, and we look forward to building on this momentum as we grow with our expanding customer base,” concluded Mr. Puorro. About Hanover Community Bank and Hanover Bancorp, Inc. Hanover Bancorp, Inc. (NASDAQ: HNVR), is a bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover employs a complete suite of consumer, commercial, and municipal banking products, and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

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FINANCIAL MANAGEMENT, WEALTH MANAGEMENT

Tactive Advisors selects FamilyWealth™ Platform

Globenewswire | May 22, 2023

FinTech Automation (“FTA”) announced today that Tactive Advisors has licensed FTA’s UniFi core banking and WealthTech applications that will be used as the technology infrastructure for the Tactive WealthTech Platform. The partnership enables Tactive to further develop their technology strategy of a unified wealth management platform to include insurance, banking, and alternative solutions that offers a holistic financial services platform to its financial advisor partners and their clients. The FinTech Automation Infrastructure-as-a-Service will be the foundation of the Tactive Platform to assist their advisors truly compete in a financial services market increasingly dominated by larger financial institutions. David Joon Park, Founder and CEO of FinTech Automation said, “Independent financial advisors have always done a good job of offering high-touch service to their clients but have been incapable of offering a combined banking and wealth management solution while maintaining their ability to remain independent. With the Tactive platform, it will create a formidable holistic financial services platform their advisors can harness to offer truly unbiased financial solutions to solve client needs.” Joe Gissy, Founder and CEO of Tactive, added, “The Tactive Platform was specifically designed to support advisors through a comprehensive tech stack enabling them to scale their business, and by incorporating FinTech Automation’s Infrastructure-as-a-Service, we will continue to disrupt the current financial advisory space and lead in the new evolution in WealthTech.” About FinTech Automation FinTech Automation is a Dallas-based Fintech as-a-Service and Infrastructure as-a-Service platform that enables digital transformation for financial institutions. The Platform consists of FTA’s proprietary UniFi Banking, Trust, and Wealth Management core, UniFi 13 micro-service-based applications, AccelerationCloud middleware application, ModernRails payments network for card issuance, payments, deposits, and payments gateway, and FamilyWealth our suite of WealthTech applications. The FinTech Automation Platform is uniquely built for banks, FinTechs, and financial institutions offering bank sponsorship, Banking as-a-Service (BaaS), AdviserTech, and embedded finance. About Tactive Founded in 2021, Strategy Marketplace, dba Tactive, is an SEC-Registered Investment Advisor (RIA) with an award-winning WealthTech platform. Its mission is to level the financial playing field by giving advisors an integrated comprehensive financial service platform to serve their clients individual and business needs. Tactive was named winner of the WealthManagement.com Industry Awards for Outstanding Achievement in Digital Advisors in the “Robo” category. They were also named to the 2023 WealthTech Top 100 and nominated in 2022 for top TAMP platform from the Wealth Management Industry Awards.

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FINANCIAL MANAGEMENT, DIGITAL BANKING

Abrigo unveils new AI-driven banking intelligence capabilities at ThinkBIG conference

PRnewswire | May 17, 2023

Abrigo, a leading provider of growth and risk management software for U.S. banks and credit unions, recently announced significant improvements to Abrigo Connect, the company's banking intelligence solution. Abrigo Connect now includes new artificial intelligence (AI) capabilities for ease of use and new role-based products to help leaders make strategic and operational decisions. The functionality was revealed at Abrigo's ThinkBIG conference in Miami last week, where 600 attendees convened for thought leadership and Abrigo product innovation. Introduced in 2020, the Abrigo Connect platform curates relevant information to quickly deliver intuitive and actionable dashboards across lending, credit risk, financial crime management, enterprise risk, and banking operations. These dashboards give financial leaders insights into institutional performance, opportunities for growth, and employee efficiency. "Banking leaders have to do more with less given the economy, and they need real-time information to optimize decisions around resources, loan growth, and risks. Abrigo Connect can close that information gap quickly, without months' long implementations or complex data stacks," explained Ravi Nemalikanti, Abrigo Chief Technology Officer. Abrigo Connect features a new user interface powered by ThoughtSpot Everywhere. It uses AI, GPT-3.5, and natural language search capabilities so bankers can find their data using the words they speak everyday – improving the speed and quality of results. "Companies that are building their businesses on data, both internally and in their offerings for customers, will realize unprecedented competitive advantages. It makes us immensely proud to be empowering a global community of data-driven companies, like Abrigo, that are using ThoughtSpot to build sticky products that deliver business impact and extend analytics to their customers that deliver a modern data experience," said Sumeet Arora, Chief Development Officer at ThoughtSpot. "Abrigo is driving innovation in the banking sector with AI-Powered analytics, and we're thrilled to be an innovation partner in differentiating their platform with a bespoke analytics experience and in delighting their end users." Abrigo supports 2,400 financial institutions through lending, portfolio risk, and financial crime management automation. Leveraging its customer network, the company has built a proprietary database of banking data for exclusive benchmarking within Abrigo Connect. While many financial institutions grapple with a talent shortage, they may also struggle to source or fund an in-house data science team. Similarly, many community institutions lack resources dedicated to data warehousing to power general business intelligence systems. Abrigo Connect uses information already flowing through the Abrigo Platform to sidestep lengthy, expensive data integration projects and yield immediate access to curated data. Later this year, Abrigo will also integrate additional data sources for richer analysis. The Abrigo Platform, including Connect, provides unlimited user access, allowing financial institutions to add users as their usage of data analytics expands. Bankers can have confidence in the security and expediency of data flows through Abrigo, knowing the company has integrated to more than 50 unique core systems across thousands of successful technology implementations. About Abrigo Abrigo is a leading provider of compliance, credit risk, lending, and asset/liability management solutions and services that help financial institutions thrive. Abrigo accelerates growth, increases client efficiency, and improves customer experience with an easy-to-use and expansive platform. We ensure customer success with our award-winning client service team, advisory expertise, and innovative technology. With a network of 2,400+ FIs, Abrigo offers unique opportunities for insightful peer benchmarks and best practices. Visit abrigo.com to learn more.

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