The pandemic has pushed organisations’ digital boundaries to adapt to the new normal. As per a report by McKinsey, we have vaulted five years forward in consumer and business digital adoption just in a matter of around eight weeks. And that’s just the start! Along with Retail, Healthcare, Supply chain and many other segments, Fintech has also witnessed exponential growth.
To facilitate transactions better, the traditional card-acquiring organisations and vertical software companies and marketplaces are now adopting Fintech and evolving with the times. To stay in pace with the continually changing regulations and compliance standards, companies today need advanced payments infrastructure.
As per a report by Business Insider Intelligence, globally, an average of 33% of consumers uses fintech daily, and 45% of people have changed the way they are banking. Disruptive technology, digital transformation and higher customer expectations are changing the financial landscape.
Global investments in FinTech more than tripled in 2014, reaching more than $12 billion. In comparison, banks spent an estimated $215 billion on IT worldwide in 2014, including hardware, software, and internal and external services. This is a material number, and because it is so highly targeted, the FinTech spending will really make an impact (PWC.)
Independent Software Vendors (ISVs) need to provide innovative solutions, have a robust digital presence and meet customer demands to outpace their competitors in this disrupted market. Partnering with mid-level or large firms is like having an extended arm to leverage the right resources and expertise to provide ISVs with the competitive edge.
Here are a few key metrics that ISVs need to focus in order to sustain and succeed their business in 2020 and beyond:
Prepare your IT model for the New Normal
Preparing for the digital-first era will require essential changes across, and around, the entire IT stack. It may appear logical to refrain from upgrading the core systems to avoid disruption and spending vital resources, but at what cost? Not adapting will not only cost you new business but your existing customers as well as your reputation.
Leverage Product Modernisation, Cloud tech and AI to reduce Operational Costs
Outdated technology not only exhausts your financial resources but also ends up consuming more human resources and time taking. The ever-spreading cost base consisting of one-time regulatory fixes, fraud prevention, layers of systems and codes, cybersecurity efforts restricts growth. It leaves less budget available for capital investment into new technology and further drives a vicious cycle of increased operating costs.
Leveraging the advanced tech will empower your services, help you take a customer-centric approach and improve overall connectivity.
Adopt a Customer-centric Technology Approach
Customer intelligence: Creating a smart balance between humans and machines.
Bringing on board the ability to create and receive information in real-time and act upon it will drive revenue and profitability more directly in the future. Organisations adopting this advanced tech-enabled way to interact is one of the key trends affecting Fintech. An approach that is more customer and context centred, providing a more seamless omnichannel experience.
Prepare Your Architecture for The Future
Equip yourself with an architecture that is accessible anywhere- anytime. Along with an agile architecture, enterprise databases, data warehouses, applications, and legacy systems must co-exist without compromising on data security. Enable linking to comparable systems, apps, wearables and mobile devices for better B2B and B2C connections.
Systems architecture plays a vital role in balancing control and accessibility. The assembly of your tech can protect you from cyber threats without discouraging interaction.
Fintech plans to invest in expanding the digital capability, modernising legacy systems, managing security, identity and privacy and building modern workplace over the next 12 months, according to report by Delloite.
Solutions have gone beyond traditional banking and will continue to be driven by technologies like AI, RPA, Blockchain, and IoT. Customers continuously demand and relish more flexibility and accessibility in their experience.
Fintechs, millennials & lighthouse customers keep changing the rules of the game. Innovation and agility of banks are, therefore, a success determinant.
We, at Gateway Digital, have helped create flexible and secure human-centric solutions that increased engagement by over 40% for our clients. With our extended ecosystem of Fintech partners, we create exponential value.
At Gateway Digital, we specialise in transforming businesses by providing the right insights and technology solutions and supporting them in their growth journey. With a rich talent pool and hands-on experience in innovative technologies, we collaborate with ISVs to help them gain a competitive edge in the disrupted market.
Let’s create the future together! Connect with us.
The Banking Industry Is Spending Wildly on the Latest Tech