Data Management Is Key to the Member Banking Experience: Finastra
There's a tremendous amount of data on members that FIs can "capture and use to provide more engaging contextualized experiences."
How credit unions and other community financial institutions handle their data will have the biggest impact on fintech and digital banking and the consumer banking experience in the coming year.
Allan Brown, vice president/general manager, digital community markets, of UK-based financial technology provider, Finastra, shared some of his top trends to monitor in 2020.
What will be the biggest impact on fintech and digital banking/? Brown suggested, “Anything related to payments is exciting and growing, and I like some of the tools around financial literacy that make it more convenient for people to save.” He added, “What will be central moving forward is the tremendous amount of data about individuals that financial institutions can now capture and use to provide more engaging contextualized experiences.”
How will big data will impact the user banking experience? Brown pointed out big data is changing everything. Financial and technology companies able to aggregate data, harness it, and automate around it will have a huge advantage. “They will become part of a trust loop, earning greater trust by performing valuable services for their users, who will, in turn, grant access to more of their data in order to gain even more accurate and relevant services.”
Brown recalled how people, like his parents, involved their financial institutions in just about every big decision they would make. “They had a high level of trust in their financial institutions. Today’s accountholders and members still have that high level of trust, which financial institutions can build on by leveraging data and participating in their depositors’ decision-making in a new way.”
How credit unions and community banks can compete and win with fintech? “For credit unions and community banks with limited investment power, it’s key to find ways to differentiate themselves. They can do that by taking advantage of a technology platform like FusionFabric.cloud — a scalable, open and collaborative development platform — to create a technology set that enables them to be as engaging and innovative as the big financial institutions and compete with new entrants to the market,” Brown said.
“Credit unions and community banks can partner with fintechs to provide a unique and tailored experience that they would otherwise be unable to deliver,” Brown said. “You can compete with the big guys without having to shoulder the investment that those big guys have to make. A credit union or community bank can choose a pay-as-you-go model based on consumption and leverage fintech ecosystems, collaborate with universities and non-profits, or even collaborate with other credit unions or community banks to create a killer app together.”