FinTech used to be about designing new ideas for financial services to solve customer problems with the aid of technology. Startups in this space used to operate within the tight confines of the regulations for each market, often without the financial bandwidth to adapt to the dynamic market conditions.
Today, FinTech has gone through a maturity phase, with emergence of mature financial digital organisations that operate from within the traditional financial world. Fintech has gone through several phases of evolution that we can describe in the following phases:
- Early Startups
Fintech solutions originated for the end customer i.e. for B2C customers in areas such as offering faster and easier solutions. They usually integrated with novel technologies such as mobile banking and cloud computing, that were not widely adopted at that point. The entire focus was on empowering customers to do banking better and more conveniently.
- Evolution to B2B solutions
We can think of Fintech to be in this stage, where the focus has gradually shifted from customer to businesses. They are driving innovation for businesses to perform better with fintech solutions, and analysts are confident that B2B revenues will significantly outperform customer solutions very soon. Escrow services for businesses, cross-border payments, B2B automated lending solutions are examples of where the sector is headed.
- Fintech Ecosystem development
Even though the new-age fintech startups are determined to deliver innovative and agile solutions, they cannot compete against the reach of traditional banks. Existing banking infrastructure is in the position to command the required investment, economy of scale, and work within the regulatory constraints. But they can recognise the innovation and value that digital fintech startups bring to the table. In the near future, fintech in financial services will progress towards building an interdependent ecosystem of the best products and services that the customer will require, while reducing the risks to traditional financial institutions.
There is no doubt that creating ecosystems is a viable model of growth for both traditional and modern financial institutions. But the question of how it can be successfully implemented is an emerging topic in the world of finance.
Of course, institutions are not blind to the shifting of priorities in the industry. Several global organisations have already embarked on a digital transformation journey, one where they leverage the best of both worlds. However, there is still a lack of urgency in the way this is being approached, focused on immediate returns forecasts rather than on seamless long-term adaptability.
mFino’s Platform for Open Banking Strategy
mFino’s Open platform is an easy-to-adopt strategy for organisations that are looking for innovative solutions to the challenges put forth by small fintech startups. With the open platform, organisations, consumers and other stakeholders can seamlessly connect with each other and to the banking platform. With open APIs that can integrate into the platform, delivering the most value to all stakeholders can be prioritised without compromising on consumer experience.
mFino’s platform comes with the software, content, third-party developers and an entire ecosystem of app developers. mFino empowers financial organisations to self-perform key functions without needing an army of consultants and developers. The simple process of integrations enables them to integrate their own date with that of relevant third-party data. One of the biggest advantages of the mFino platform is that it is fully capable of integrating future developments in FinTech within minimum time and fewer resources.
It is no secret that open platforms are the way to go when embracing digital transformation in fintech. mFino brings together the right elements that traditional and modern fintech organisations have to embrace to thrive in the modern digital banking sector.
Retail space was the first to be affected by the evolution of consumer into a digital customer. They scrambled to come up with solutions on how to address the demands of the modern customers, including mobile applications that can recognise people, places, events, and cater to their financial needs even. With mFino, you can incorporate data streams like these, including specific content and analytics for the diverse digital platforms where the customers are present. Big Data is inevitable in the finance sector, which can be mined for insights that drive effective and efficient decision-making.
Collection of data can have a transformation effect on the consumer experience, making customisation an inherent part of the journey. There has been sufficient innovation in providing raw data from a number of fintech solutions, but there is a gap in leveraging the same. With mFino’s open platform approach, customers, third-parties and Fintechs themselves can deliver greater choices to the organisations to elevate the customer experience.
Even as mFino empowers innovation in organisations, the solution works only with data that can be trusted, infrastructure that can be scaled, and effective marketing and distribution channels. That is why you get to decide which third-party solutions can be integrated, and only work with third-party providers who can adhere to your standards in regulation and compliance.
As customers get used to digital making their everyday life easier, they do expect banking and financial services to do the same. They need all their requirements to be provided with convenience, and will not wait for the traditional development process. Customers need to be provided seamless updates, real-time app information (no lag between offline and online records), and convenience in their operation. mFino’s open platform handles the administration, authentication, compliance, and other fundamental services that are a huge part of the consumer experience.
mFino works with the focus on delivering global standard solutions with the minimum costs and resources. Administrative procedures, controls, Web standards (including HTML5) all drive efficient business development and transformation.
When organisations plan to adopt digital transformation in the search for growth opportunities, traditional approaches fall too short of delivering results. mFino’s open platform offers a frictionless experience through proven data models, and fintech processes that can reach the customer without intermediaries.
Financial institutions have to inevitably embrace the open platform strategy to stay ahead of the fintech solutions flooding the market.