Banks appear to have come to terms with some of the biggest challenges they face. One in five financial organizations, only, said they were now worried about competition from new entrants even though giants like Amazon, Google and Apple are angling for an ever-larger slice of the payments pie.
All types of providers can have a place in the financial ecosystem which is big enough for them. Collaboration, not competition, is the way forward. In fact, it’s about focusing on finetuning and constantly updating the core offering and adding value via add-on solutions from other institutions. It takes too long for institutions to build, maintain and deliver all of the products their customers may want, they can’t invest funds to pull it off successfully, and a suite of outdated systems which can’t compete with the offering from the more agile providers will be the result.
How can Banking Circle help banks and payment businesses seize opportunities in the current climate?
To offer to their customers in their own name the possibility to build solutions in house, Banking Circle brings together a wide range of solutions for institutions. This avoids institutions attempting the shortcut of adapting existing solutions to meet another need or serve another market.
We have seen a steady increase in banks and other financial institutions accepting the need to embrace third-party infrastructure providers such as Banking Circle, but the trend has been accelerating throughout the pandemic. Nowadays, we are seeing digitalization move quickly up the list of priorities, which is originally driven by the demands of customers and then by banks overcoming their traditional reluctance to cloud-based delivery of essential transaction services. The value of working with an external financial infrastructure provider is certainly proven by the need for rapid innovation and implementation of new solutions, as many would not have been able to meet the overnight change in customer requirements brought about by the pandemic and nationwide lockdown. The need to create both a user experience and a user interface that work for a wide range of customer types came top of the list, is one of the greatest challenges to face when building a digital-first relationship at scale. It is about providing the experience rather than the underlying technology. With a significant number of business that have an interdisciplinary team looking at the latest technology innovations, banking infrastructure has become a much more strategic concern rather than being a maintenance headache for the IT department.
This crucial decision is an area where businesses need to ensure they have expert providers and dedicated developers and digital engineers working on inventing, building and maintaining the solution. It’s more than a matter of IT selection but something that can affect the entire business and consequently demands broad input and buy-in