For centuries, financial services have been the banking sector’s birthright. Complex systems, bureaucracy, and compliance restrictions made it impossible for other organizations to take a piece of the (financial offering) pie.
Today, brands across all sectors are being empowered with financial infrastructure driven by powerful plug & play APIs, making it possible for any organization to provide the financial services that they need for their partners and customers.
Consumers are increasingly demanding faster, simpler and more accessible means to manage and access their finances. Thanks to the move towards unbundling of the financial services value chain, this is now becoming a reality.
We’ve rounded up the top 5 reasons why you need to start thinking about weaving in financial services into your business too:
- New Revenue Stream
Diversify your revenue streams and open up new ones. Monetize the spending of your customers, partners, or vendors. By adding financial services to your existing business model, you can avail new products and services and earn money through interchange revenue (cards), float income, foreign exchange fee and a number of other sources – just like a bank would!
- Scale Faster and Cheaper
No need to acquire regulatory licenses, build compliance functions, set up operations processes and team, obtain certifications and build and integrate systems. Scale your products and services faster with minimal investment across different markets without the need to become a payments expert.
- Elevated Customer Experiences
Customers no longer have to deal with multiple entities to fulfill their financial needs. By embedding financial services in your user journeys and features, you can provide customers with simple and seamless purchasing journeys and financial services that are highly contextualized and relevant.
- Brand Equity
Offering highly relevant personal financial services and access to customer data can deepen your relationship with your stakeholders and in turn boost brand equity. Businesses can use this data to retain customers and partners, build trust and loyalty and essentially increase customer and partner lifetime value.
- Decreased Operational Spend
Managing your own financial services means massive savings over time. Save money on direct recurring expenses, such as processing fees and foreign exchange commissions as well as indirect operational expenses from managing large financial operations teams to handle settlement and reconciliation.