Customization, integration and focus on the core business promise to further transform the business environment of technology companies in the financial market.
In January this year, we attended the Paris Fintech Forum, one of the largest fintech events in Europe. In addition to listening to CEOs from various fintechs, major banks and capital markets companies around the world on the most diverse innovations, we were able to observe the key trends that will transform the financial market in the coming years. These are concepts that should apply strongly in the market from now on. Check out the main highlights:
1. Customization and data sharing
The way people consume financial services is changing, and both banks and businesses will have to adapt. Now, the ones who decide how they want to contract their various financial products are the clients themselves, and that’s where the concept of customization comes in. Consumers of this new digital age may choose to have a bank account, another credit card, borrow money from one fintech, and make an investment in another, and so on, using services from a variety of different companies. What do you want.
Europe has pioneered the adoption of a new payment services regulation (PSD2). Bank customers will now be able to hire other suppliers to manage their finances, which opens up new opportunities for customers. With this change, European banks will be required to provide their customers’ bank information to third parties. In Brazil, this innovation of open banking is not yet happening, mainly because banks are still trying to protect the current oligopoly, making it difficult for this data division and the integration of other financial solutions in the consumer account.
Linked to this concept of customization comes another trend for the financial market, which is integration. With customers increasingly looking for personalized services, companies also have to adjust to this new landscape, and integrating is the keyword to keep pace with how fast the market is evolving.
Therefore, the issue of bank data sharing is very important, because it is this innovation that will continue to evolve the sector. This is because, in the end, this data is not from the banks, but from the customers, who can make use of them the way they want, choosing the best service for their purpose.
3. Focus on core business
To maximize the value of customer service, companies will need to focus their efforts on the core business, that is, at the heart of their business, what is the essence of their operation. This presupposes integration with other businesses to gain expertise and capillarity in areas other than their original focus. This will make financial services platforms work as a “LEGO”. That is, consumers will no longer just say “I am a customer of such a bank”, but “I use a product from a particular bank”.
With this constant movement of the market, from now on the fintechs differential will also happen through the creative process. This is because, in the age of artificial intelligence, any repetitive process that can be learned by a robot will be replaced by a robot. With this, the intellectual human capital of “out of the box” thinking people will become increasingly fundamental.
Given this scenario, the bottom line is that collecting data to understand customer behavior and needs throughout the chain is a major innovation for years to come. The market is changing and technology advancement will be the key factor in delivering the best customer experience at the end of the day.