Here’s an interesting way to celebrate the last day of Black History Month. Let’s talk about what banks and fintechs can learn from Beyoncé.

Affectionately known as Queen Bey, the black music and entertainment icon released a single this month called Texas Hold ‘Em, the pop singer’s first ever country music song.

The song, which you can listen to on Spotify (beware of the NSFW album cover image), has sparked a flurry of debate among die-hard country music lovers and pop music fans. Some country music enthusiasts perceive the lyrics of the song as inauthentic and the beat too poppy to be considered country. Others really enjoy the song and are offended that some country radio stations have refused to play the song. The new beat has even caused some pop music fans to start listening to country music. On both sides, however, Beyoncé’s new hit has divided people. Listeners either love it or hate it.

I’m far from a music critic, but I like Beyoncé and because I live in rural Montana, I listen to a lot of country music. However, I can’t stand the lyrics of the new song. I love the beat, but I feel like she used ChatGPT to gather a handful of “country” words– dive bar, tornado, liquor, slow dance, hoedown, whiskey– and poured them all into the song. Has Beyoncé really ever been to a true dive bar? I digress.

While everyone is entitled to their own opinion about the hit single, there are a few hidden lessons in the controversy and conversation surrounding Texas Hold ‘Em. So what can it teach banks and fintechs?

Embrace change

Beyoncé showcased an impressive ability to convert serious pop music fans into country music enthusiasts. Listeners who would have previously never even considered playing a country music song on purpose have gained a new appreciation for the genre. This power to open consumers’ minds highlights the importance of embracing change and adapting to new trends. Despite the challenge of staying on top of trends, fintechs and banks should be open to evolving technologies and customer preferences.

Authenticity matters

Just like how listeners of all music genres value the authentic beat and genuine lyrics of their favorite type of music, so do customers appreciate a genuine experience from their financial services provider. It is easy for consumers to tell when a brand is trying to be something that they are not. Fintechs and banks should strive to be transparent and true to their brand values.

Don’t limit your audience

The song’s polarizing effect shows the power of how music (or products) resonate differently with various audiences. Financial services companies should occasionally revisit their offerings to see how they can expand and fulfill needs of a wider audience range. As long as it is authentic to the brand, banks and fintechs should consider offering a more diverse range of products and services that cater to more audiences, serving their varied needs.

Photo by Emily Bauman on Unsplash

The National Payments Corporation of India (NPCI) launched the country’s Unified Payments Interface (UPI) in 2016 to serve as a real-time payments system to facilitate peer-to-peer and person-to-merchant transactions via mobile phones. Since then, the payments infrastructure has seen massive growth, having reached its peak in December of last year, when it surpassed 12 billion transactions worth $220 billion (Rs 18.23 trillion) in the single month.

The U.S. launched its real time payments initiative, FedNow, last July and has a lot to learn from India’s UPI. As the U.S. seeks to modernize its own banking infrastructure, here are five key lessons that can be learned from India’s experience with UPI.

Simplicity and accessibility

One reason for UPI’s growth is its simplicity and accessibility. The payments system allows users to transact using their smartphones with just a few taps. Notably, UPI doesn’t require the user to remember long bank account numbers or Indian Financial System Codes (IFSC). By simplifying the user experience in this way, UPI has helped drive adoption, especially among the unbanked and underbanked populations.

U.S. financial services can learn from this focus on the user experience that ultimately makes digital payments more intuitive and easy to use. When friction is reduced for end users–especially with underbanked populations in mind– adoption has the potential to skyrocket.

Interoperability

With a lack of open banking regulation in the U.S., the banking system severely lacks interoperability. UPI, on the other hand, is built on the principle of interoperability, allowing users to make payments across different banks and payment platforms. Facilitating payments among all players has helped create a level playing field for consumers and merchants alike and has contributed to UPI’s rapid growth.

In the U.S., interoperability among banks and payment platforms is still a challenge because many systems operate in silos. Many fear that cooperating will lead to a loss in competitive advantage. However, adopting a standardized, open, and interoperable approach as outlined in the proposed Section 1033 of the Consumer Financial Protection Act has the potential to not only drive innovation but also improve the overall user experience.

Security and fraud prevention

The NPCI built UPI on a robust security framework to ensure that transactions are safe and secure. The payments systems’ security has earned consumer trust and has therefore been a critical factor in driving adoption.

Security concerns surrounding digital financial services abound in the U.S., however, where many consumers worry about the safety of their financial information and are concerned for their own privacy. Established financial services firms and fintechs alike should prioritize security and adopt best practices from UPI in order to improve trust and confidence in their digital payments operations.

Low transaction costs

One things UPI transactions are known for is the low cost per transaction, which makes them an attractive alternative to cash payments. The cost savings has been a key driver of adoption, especially among small businesses and consumers.

Many digital payments solutions in the U.S., however, still carry high transaction fees, thanks to the large number of middlemen involved. The costs associated with digital payments stifle adoption, and incentivize cash usage or even paper check payments. Reducing transaction costs would change the incentives, driving more people and businesses toward digital payments.

Government intervention

One of the biggest lessons the U.S. banking system can learn from UPI is the role of government support in driving innovation. UPI was developed and rolled out by the NPCI with the support of the Indian government, as part of the country’s push towards a cashless economy. The government’s proactive approach has been key to the success of UPI and has helped create a culture that fosters innovation.

In the U.S., greater government support and collaboration with the private sector could help drive similar advancements in digital payments. This idea carries significant challenges, however, as many Americans shy away from governmental intervention, especially when it comes to their finances.

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