Fintech
How are incumbents adapting their offerings to make them more accessible?
Now, with a focus on social and environmental impact, the term “fintech for good” has evolved from its initial meaning of charity. But it doesn’t stop there. This July, we’re on the hunt to discover how the fintech sector is doing “good” for local communities and the world, revealing current and future plans to make changes.
When you think of a financial service that does “good,” one of the first things that comes to mind is accessibility. Historically, certain groups have found it difficult to access financial services because of a series of checkboxes that needed to be filled out. However, the emergence of financial technology has allowed many of these groups to find the support they need financially through new and unique offerings. It has also acted as a wake-up call to many incumbents who have noticed they are losing customers to newcomers.
So what are incumbents doing to become more accessible? We set out to find out…
Collaborating with fintechs
For Michael SignCEO, of Flying fishthe global digital banking market, the answer many incumbents are looking for lies in their perceived threats: fintechs. By partnering with fintechs, incumbents can accelerate their digital journeys and accelerate their ability to be more accessible to a broader group.
“Historical financial operators are increasingly collaborate with fintech startups to enhance their service offerings through external platforms. These partnerships allow incumbents to host their diverse financial services on a centralized platform, greatly simplifying user interactions and expanding their reach. This consolidation promotes inclusivity, making financial services accessible to a broader audience of diverse economic backgrounds.
“Integrating advanced features like personalized financial dashboards into these platforms simplifies financial management, making it more intuitive and user-friendly. Additionally, fintech leaders are driving the integration of financial education into these platforms.
“This addition helps demystify financial concepts, thereby creating awareness and increasing trust among users. For small businesses, these platforms face significant challenges such as high costs and complex access to traditional financial systems. By offering clearer, more accessible financial guidance and reducing barriers to entry, these platforms enable small businesses to secure the finances they need to expand.
“By leveraging these unified systems, incumbents are effectively dismantling traditional barriers to financial access and revolutionizing the way they serve a diverse, digitally savvy customer base. This shift demonstrates a commitment to creating more inclusive financial ecosystems.”
Personalization of services through AI and ML
Echoing Zetser’s sentiment on partnering with fintechs, Mila Khrapchenkoco-founder and co-CEO of Ameteea B2B fintech platform, also highlighted the importance that technology can have in enabling businesses to be more accessible.
“Incumbents, or large established players with significant market share and a stable position, are often perceived as rather slow-moving giants. However, digital transformation has affected everyone, including these large players.
“They are adopting user-friendly web and mobile applications, significantly reducing the cost of providing the service. Many operations can now be automated, such as opening accounts remotely, requesting credit limits, deposits and brokerage accounts.
“Furthermore, while the process may be slower for these large entities, they are also moving towards various partnerships with fintech companies or jointly supporting some initiatives. This trend helps them serve their customers more efficiently and effectively by meeting their needs more quickly. Examples include rapid onboarding processes and digital payment networks such as US Zella which was initiated and supported by major US banks.
“In addition, these companies are likely to be leveraging artificial intelligence and machine learning to process data and personalize services. In some markets, there are initiatives related to open banking, which makes services more accessible, reduces fees and lowers average costs for different services. This comprehensive approach is what we call financial inclusion.”
Data is the key
Data has emerged as one of the most important assets an organization can have. After all, as the saying goes: knowledge is power. And in this day and age, data is knowledge.
Christian WidhalmCEO, Bloom CreditCredit data solutions provider explains how incumbents can offer more comprehensive and complete services using data.
“Incumbents are looking for solutions that can enrich their ability to understand their customers. Whether their customers are banked by the institution or by others, to learn things that they can’t find in a consumer credit relationship.
“Opportunities with things like consumer permissioned data, especially on consumer banking transactions, can help financial institutions learn more about their customers and provide them with better products, make smarter decisions about credit risks, and directly help their customers enrich their credit history. It’s a win-win situation.”
Targeting unbanked communities
To sniff IgitianCFO and founder of outflowa financial platform for content creators, points out that some offers can be a godsend for unbanked consumers.
“To be more accessible, incumbents are changing their approaches by embracing digital transformation, and this is mainly happening by introducing mobile banking apps and online services to make it easier for customers to contact them.
“For example, they are personalizing these offerings through data analytics. To promote financial inclusion, fintechs have also developed fee-free accounts and micro-lending that target unbanked communities. All of these strategies together increase accessibility while embracing the evolving demands of customers in contemporary banking systems.”
Adapting products to each customer’s problems
Jeff Wiseaccessibility manager at Disability:INthe company that promotes the inclusion of people with disabilities, explains how the products are adapted to different preferences and technical requirements.
“Financial technology incumbents are increasingly recognizing the importance of accessibility in their offerings.
“They are considering a wider range of disabilities when creating customer profiles, ensuring their products and services meet different preferences and technical requirements.
“This inclusive approach helps design more user-friendly solutions for individuals with unique needs. Additionally, companies are exploring ways to make financial education more accessible. This includes adapting educational content to make it more relevant and understandable for customers and prospects with disabilities, thereby fostering a more inclusive financial community.
“In addition, incumbents are offering modified debit and credit cards in large print and Braille formats, making them accessible to blind and partially sighted people. They are also introducing digital cards designed to be accessible, ensuring that all customers can manage their finances with ease and independence.”