What is Fintech Enablement? | News about banking automation
Many financial institutions struggle to decide where to focus their strategic modernization efforts. Should they prioritize back-office and core capabilities or more tactical front-end and point solutions? Trying to choose the best option often leads to significant resource use and major inefficiencies. Combined with rapidly changing customer expectations driven by generational shifts in technology, this battle means financial institutions must quickly rethink their approaches to modernization and innovation if they hope to remain competitive.
This is where fintech enablement comes in. Fintech enablement empowers financial institutions to access and leverage new technologies and tools on their own to improve operational and decision-making processes, and in turn offer streamlined products and services to their customers.
What is a Fintech Enablement Platform?
Designed to accelerate the launch, service and expansion of financial solutions and new customer journeys, a fintech enablement platform is a technological infrastructure that acts as an operating system to implement the many possibilities of fintech enablement. They can often be considered one-stop shops for all financial technology solutions, including digital wallets and payment gateways.
Fintech enablement platforms are also uniquely designed to integrate with existing systems in a cost-effective manner to achieve a seamless transition. They include pre-built and modifiable components that can be quickly deployed in a more agile and responsive method than most traditional systems. Built to be highly scalable and customizable, fintech enablement platforms allow businesses to tailor solutions to customer needs now and in the future.
5 Key Components of a Fintech Enablement Platform
There are several key components commonly found within fintech enablement platforms. If you’re thinking of working with a fintech enablement platform provider, make sure they have these five components in place.
1. Product definitions and components in critical product areas
Having well-defined product definitions and components within critical product areas such as lending, savings, mortgages, insurance, payments and embedded finance ensures that the platform is clear and consistent for everyone involved.
2. Data models that sit on top of existing data sources
For data sources such as legacy core and open baking, having data models that sit on top of existing data sources allows the platform to integrate with a wide range of data sources, including legacy systems, cloud services, and third-party APIs.
3. Ability to create customer journeys
Effective fintech enablement platforms should have the ability to create customer journeys that make use of built-in automation and streamline both workflows and the customer experience, give the platform a more personal touch and gather valuable insights about user behavior.
4. SaaS Ecosystem Links
SaaS ecosystem links that can be orchestrated into customer journeys and bring external innovation into the mix take advantage of the latest software innovations in a cost-effective manner.
5. Self-use tools
Self-service tools that allow non-technical staff to create, operate, and update solutions using little or no code can reduce turnaround time and reduce the cost of simple changes or customizations.
Getting started with Fintech enablement
Whether you’re a large financial institution or new to the market, a fintech enablement platform could be the solution you’ve been looking for. Learn more here.
