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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Western Union is leveraging Plaid’s open banking infrastructure for money transfers in Europe.
The move is expected to benefit end users by offering a faster, more secure payments experience without negatively impacting the user experience.
Leveraging open banking payments will also create operational efficiencies for Western Union employees.
Plaidannounced this week that Western Union has selected to leverage its infrastructure to offer its customers in Europe seamless open banking payments. Western Union anticipates the move will offer its customers additional flexibility in how to send money to family and friends.
By leveraging open banking technology, funds transferred using Western Union will be faster and will have higher thresholds for safety and security without adding friction to the user experience.
“Consumers are demanding easier and simpler border-less payments without compromising on security, said Plaid Head of Europe Brian Dammeir. “Plaid is delighted to collaborate with Western Union to enable users to make larger payments, safer and faster.”
The new technology will also benefit Western Union employees by creating operational efficiencies. Plaid’s open banking technology streamlines Western Union’s internal operations and enhances its payment infrastructure by providing a common standard of funding across Europe.
“It was great working with Plaid to offer a new, easier way of doing money transfers with us,” said Western Union VP Omnichannel Marketing Bart Stence. “This collaboration shows how we at Western Union invest in innovation to provide our customers with the flexibility and trust they need.”
The question of deploying AI technology in fintech and financial services is no longer a question of “if” – or even “when.” As our recent spring fintech conference confirmed, innovators and entrepreneurs across our industry have already decided that the answer to both of those questions is “yes” and “now.”
But there are hurdles and challenges for fintechs and financial services companies as they seek to deploy AI in their products and offerings. Unlike other industries, fintechs and financial services companies operate in a high-risk environment where issues of trust, transparency, and explainability – to say nothing of regulatory oversight – are virtually existential.
Earlier this year at FinovateEurope in London, Israel-based Citrusxdemoed its platform that enables all stakeholders in the AI pipeline to remain in the loop and benefit from 100% transparency in their models.
We caught up with Citrusx’s VP of Business Development Michal Berdugo (pictured) to talk about the company, how it helps businesses effectively deploy AI technology, and what we can expect from the company in the near future.
What problem does Citrusx solve and who does it solve it for?
Michal Berdugo: In today’s data-driven world, everyone wants to adopt AI for various use cases, but they often face many roadblocks. In high-risk industries, the primary obstacles are a lack of understanding and trust. When key decision-makers can’t trust their AI systems it can lead to potential reputational and regulatory damages.
Citrusx comes in to help financial institutions and other organizations in highly regulated industries speed up their time to production while ensuring their models are accurate, robust, explainable, fair, and comply with regulatory requirements.
How does Citrusx solve this problem better than other companies or solutions?
Berdugo: High-risk sectors such as banks, loan providers, and credit unions, face unique challenges in adopting AI solutions. The lengthy production timelines and the inherent opacity of AI systems leave these companies vulnerable to liability issues. Without transparency, they are unable to fully understand or explain AI-driven decisions, heightening their exposure to legal and regulatory risks.
Citrusx’s patent-pending technology delivers real-time insights, accurate explanations, and critical validation measurements throughout the development cycle and offers proprietary monitoring and prediction methods, making it model-agnostic and resilient to feature correlation problems. Citrusx empowers businesses to build trust and deploy AI responsibly, unlocking its full potential.
Who are Citrusx’s primary customers? How do you reach them?
Berdugo: Citrusx attracts risk leaders and data science leaders who are actively seeking innovative solutions. These forward-thinkers are constantly on the lookout for ways to mitigate risks and maintain compliance with regulations. Peer recommendations validate Citrusx’s effectiveness, while articles featuring insights about us and thought leadership also spark interest.
When these leaders search for cutting-edge tools, Citrusx naturally emerges as a preferred option. Additionally, understanding the unique challenges in high-risk industries such as finance and insurance allows us to effectively address their specific pain points. To explore how Citrusx can benefit your organization, reach out to us directly via our website and book a demo.
Can you tell us about a favorite implementation or deployment of your technology?
Berdugo: One of the Big Five banks in Canada approached us because they wanted to deploy an AI model, but finding a way to make it explainable while complying with regulations was a challenge. When models become more complex, understanding their decision-making processes and fostering accountability and trust in the outcomes becomes difficult. Additionally, without any transparency of the rationale of the model, it can cause vulnerabilities and biases to slip through the cracks, which could lead to reputational and regulatory damages.
To help them combat these issues and build a robust, explainable, and fair model, we provided them with a framework to explain the inner workings of their model accurately. Using proprietary explainability methods, we gave them the tools to see the model’s results on a global and local level, yielding a full report of each sample in their dataset.
With our help, the bank achieved a deeper level of understanding of their model, giving them the trust to finally put them in deployment! All stakeholders, including those who are non-technical, were able to understand the model’s decisions, allowing them to approve it faster with confidence.
Instead of taking six to nine months to deploy their model, we cut the time in half. We also gave them the assurance that their models remained compliant with regulations.
What in your background gave you the confidence to tackle this challenge?
Berdugo: Based on my experience, I gained an understanding of the significant gap companies in the financial sector are facing. While organizations want to keep pace, they are falling behind because of regulations. On top of that, there is a lack of transparency and trust in their models. At Citrusx, we had the confidence to take on this problem because we onboarded a global bank as our first main customer. With our combined backgrounds in the financial sector, government, and AI/ML development, we had the tools to build the best solution for our clients and potential clients.
Above: Citrusx’s Michal Berdugo and Dagan Eshar, VP of Research and Development
What is the fintech ecosystem in Israel like? What is the relationship between fintechs, banks, and traditional financial services companies in the country?
Berdugo: Israel’s fintech ecosystem is thriving, boasting a high number of startups creating innovative financial solutions for a relatively small population. There are roughly 550 fintech startups in Israel, and 20 of those companies are valued at over $1 billion. This makes Israel a major player in fintech on a global scale.
The relationship between fintechs, banks, and traditional financial institutions in Israel is evolving. There’s both competition and collaboration. Banks are partnering with fintechs to improve their digital offerings and reach new customers, while fintechs benefit from the banks’ established infrastructure and customer base. This symbiotic relationship helps both sectors grow and provide better financial services in Israel.
You demoed at FinovateEurope earlier this year. How was your experience?
Berdugo: The experience was great, as it was the first conference we participated in since launching from stealth. We were excited to share more about our product and the crowd was incredibly receptive. We gained many interesting insights about what different stakeholders in the AI pipeline are focused on in the coming quarters. The Finovate team was also very helpful and gave us great feedback in preparation for the demo.
What are your goals for Citrusx? What can we expect to hear from you in the months to come?
Berdugo: We are signing new clients and working on growing and expanding our product and team in the coming year. We are working toward a time when Citrusx’s solutions will be a standard practice.
The conversation continues with Finovate VP and host of the Finovate Podcast Greg Palmer!
In recent episodes of the Finovate Podcast, Greg Palmer has discussed a number of key topics in fintech and financial services. These topics include the current state of venture capital funding, the opportunities presented by new technologies like AI and faster payments, and a look at the current challenges faced by credit unions. Catch up on the latest from Greg and the Finovate Podcast below!
Greg Palmer sits down with Pete Cherecwich, President of Asset Servicing at Northern Trust, to discuss the new technologies available to financial institutions and how FIs can push their tech stack forward.
Greg Palmer and Bain Capital Venture Partner Sarah Hinkfuss talk about the current state of venture capital funding and the best opportunities for investment in fintech.
Greg Palmer interviews Jean Pesme, Global Director of Finance at the World Bank, to discuss the impact of fast payments on the world economy, including the role of the World Bank’s Project FASTT.
Greg Palmer talks with Brian Lee, CEO of Landings Credit Union, on the role of emerging technologies in helping credit unions better serve their members and grow deposits.
Jio Financial Services parent Reliance Group launched its own financial super app, JioFinance.
JioFinance serves as a single place where users can conduct digital payments, apply for loans, and purchase insurance.
Jio Financial partnered with Blackrock last year and is expected to enter the wealth management space in the future.
TechCrunch unveiled this morning that Jio Financial Services parent and multi-sector conglomerate Reliance Group launched its own financial super app, JioFinance.
Jio Financial’s new JioFinance app launched today in the Google Play store and aims to serve as a single place where users can conduct digital payments, apply for loans, and purchase insurance. The bank accounts are held with Reliance-owned Jio Payments Bank, which was granted a banking license by the Reserve Bank of India in 2015.
“Introducing JioFinance, for your fast and secure UPI payments, seamless bill payments, and timely reminders,” the app description reads. “Enjoy instant rewards and benefits on all UPI transactions. Instant account opening in a few minutes, with zero balance feature, interest rate as high as 3.5% and a digital passbook, with Jio Payments Bank. Take control of your finances with easy tracking and analysis of your spends in a few clicks. Pay bills, track expenses, and save money with the JioFinance app!”
Today’s launch comes after Jio Financial formed a partnership with Blackrock in 2023 to add wealth management offerings to its existing insurance and lending offerings. Also in 2023, Jio Financial announced it was leveraging alternative data to enhance its personalization efforts.
Unlike the U.S., India has a growing scene of true super apps players. Reliance’s competitors in the space include Tata Group and Paytm. Tata Group’s Tata Neu aims to integrate a range of services from e-commerce and finance to travel and health under one platform. And Paytm, which originally launched as a mobile wallet and payment app, has expanded into a super app by adding banking, financial services, and e-commerce functionalities.
The new offering for financial institutions enables users to monitor recurring payments and make real-time changes from within their banking app.
Atomic most recently demoed its technology earlier this month at FinovateSpring in San Francisco.
Payroll connectivity innovator Atomicunveiled its latest offering: PayLink Manage. The new solution is an actionable subscription management tool for financial institutions that enables users to monitor recurring payments and make real-time changes from within their banking app.
“By integrating PayLink Manage, banks can not only improve their service offerings and increase engagement, but also can solidify themselves as the primary banking relationship,” Atomic CEO and Co-Founder Jordan Wright said. “When banks help their account holders with innovative insights that are actionable, everybody wins.”
PayLink centralizes and automates oversight and control of recurring payments. Users can connect, view, and track a variety of payment types from subscriptions and bills to streaming services and mortgage payments. PayLink Manage also enables users to make real-time changes to their subscriptions directly within the banking app. Additionally, courtesy of Atomic’s direct connectivity, financial institutions can gain insights into usage data, itemized receipts, and other key subscription information. This facilitates deeper analysis, driving more personalized guidance that helps users save money.
“PayLink leverages Atomic’s proven technology, which has already facilitated millions of secure connections across financial platforms,” Atomic Chief Product Officer Andrea Martone said. “With this launch, we are extending our trusted, robust connectivity framework to subscription management, providing financial institutions with a tool to enhance customer engagement and improve retention by helping people take action to improve their financial outcomes.”
Headquartered in Salt Lake City, Utah, Atomic made its most recent Finovate appearance earlier this month at FinovateSpring in San Francisco. At the conference, the company demoed its subscription management technology, which leverages its access to payroll, HRIS systems, and merchants to support a range of financial services, including direct deposit switching, income and employment verification, and more. Founded in 2019, Atomic has raised more than $68 million in funding from investors, including ATX Venture Partners and Portage Ventures.
FinovateSpring was a whirlwind of meeting new people, learning about new ideas, as well as seeing familiar faces and hearing new perspectives on old concepts. The show wrapped up last Thursday in San Francisco and I have a treasure trove of thoughts to share.
Before I explain the top five things I saw and heard at FinovateSpring this year, I’ll start with a disclaimer. Because of on stage and behind-the-camera speaking obligations, I only managed to watch about half of the content. Many of my takeaways stem from conversations I had–both on and off stage. One of my favorite things about Finovate is the seasoned and diverse base of attendees who are willing to openly answer questions.
That said, here are my top five takeaways from the event:
GenAI is everywhere
On stage: Many of the live demos centered around genAI. Each company emphasized that they were using a large language model (LLM) with guardrails to create a responsible, generative AI to save time and create efficiencies.
On the networking floor: While conversations surrounding genAI were generally positive, some people were more bearish on the topic, expressing concerns that human-in-the-loop does not offer enough accountability and that AI needs to be responsibly integrated into workplace organizational structures so that we do not eliminate all lower level employees. I learned that everyone has an opinion on the matter, but nobody can offer any accurate prediction on future applications of AI in financial services.
Third party risk management in BaaS
On stage: With all of the drama in the BaaS space, there was a lot to talk about when it comes to third party risk management. Much of the discussion centered around properly vetting third party providers, creating open and transparent communication between third parties and the bank, and having a clear exit plan for when the third party ceases operation.
On the networking floor: A lot of folks were talking about the Synapse bankruptcy case and the potential implications its collapse may have on For Benefit Of (FBO) accounts and BaaS in general. While some said that the FBO model is risky, others said that the issue lies in middleman providers such as Synapse, Unit, and Treasury Prime, and that BaaS will remain unharmed.
Future of regulatory constraints
On stage: Many speakers and panelists brought up the topic of regulation, as multiple fintech subsectors of fintech are dealing with volatile regulatory environments. During the panels and presentations, most speakers shared a positive outlook on the regulatory environment in the U.S.
On the networking floor: Similar to the speakers, many folks I spoke with on the networking floor had positive things to say about the U.S. regulatory environment. Even when discussing consent orders related to BaaS, the emphasis of these discussions centered around future proofing third party relationships and maintaining open communication with regulatory bodies.
Scenario planning
On stage: During my fireside chat with Brian Solis, the digital anthropologist and futurist emphasized the importance of scenario planning. He stressed that both banks and fintechs will have the most opportunities for success in today’s fast-paced, ever-changing environment if they are diligent about scenario planning. This is especially true in a highly regulated industry and when AI is taking over much of the heavy lifting.
On the networking floor: While none of my conversations centered around scenario planning, a handful of folks brought up the importance of planning as a general way to mitigate risk when it comes to leveraging new technologies, forming new partnerships, and remaining customer centric.
Embedded finance
On stage: I had the opportunity to host a panel discussion on embedded finance on the second day of the conference. Our 30 minute conversation highlighted the prevalence of embedded finance across the fintech sector. The panel participants also reviewed tips on maintaining third party partnerships and emphasized that, while the customer always belongs to the bank, the relationship is more likely to get watered down when leveraging third party technology.
Off stage: Embedded finance was present everywhere I looked. It is clear that, despite some risks and regulatory concerns, banks and fintechs will continue to leverage embedded finance.
Honorable meow-ntion: J.P. Meowgan
My favorite session at every Finovate event is the Analyst All Stars, which features three or four analysts offering their seven-minute presentations on a top fintech theme. During his presentation, Ian Benton, Senior Analyst at Javelin Strategy & Research who gave a presentation on small business banking used an illustration of a cat he named Mr. Munchies who needed to visit J.P. Meogan to get a loan for his small business.
Small business banking platform Relay raised $32.2 million in a Series B round led by Bain Capital Ventures.
Relay will use today’s funds to further develop products in spend management, smart credit products, and its financial API marketplace.
Relay recently unveiled a commercial credit card offering and plans to launch a line of credit.
Small business banking and money management platform Relayraised $32.2 million this week. The Series B financing round, which was led by Bain Capital Ventures brings the company’s total funding to $51.6 million.
Today’s round also includes contributions from new investor Industry Ventures, as well as previous contributors BTV, Garage, and Tapestry. “Relay’s been on an incredible trajectory, even as others in the industry have had to pivot and find new footing,” said Bain Capital Ventures Partner Kevin Zhang. “We were eager to get behind Relay again as the company enters its next stage of growth and doubles down on the unique needs of the SMB market.”
Relay was founded in 2018 to help small businesses owners build healthy businesses by better understanding and managing their cashflow. Through its partnership with Thread Bank, the company offers business checking and savings accounts, accounts payable tools, receipt management, and– most recently– a credit card for select users. Relay also said that its launch of a line of credit offering is “slated to come.”
“68% of U.S. small business owners have cash flow problems. They worry about making payroll and mission-critical bills but lack the tools to truly address these existential threats,” said Relay Co-founder and CEO Yoseph West. “Relay gives them cash flow clarity and control—what SMBs need to sustainably fuel everyday operations—by pairing financial services with software and making banking work harder for them.”
Relay will use today’s funds to further develop products in spend management, smart credit products, and its financial API marketplace. The company believes these developments will help it achieve its goal of delivering AI-powered predictive cash flow analytics to SMBs.
Relay saw its revenues rise by 3x in 2022 and by almost 6x in 2023. While the company has not released user numbers, Relay revealed that business owners log into its platform 13 times per month, and of the clients that use Relay as their primary account, 40% log in daily.
Embedded finance and digital banking solutions provider Finotta has announced a strategic partnership with Constellation Digital Partners (Constellation).
Constellation will integrate Finotta’s Personified platform into its own solution to help credit unions offer personalized financial guidance to their members.
Finotta made its Finovate debut at FinovateFall 2022 in New York.
Embedded finance and digital banking solutions provider Finottaforged a strategic partnership with Constellation Digital Partners (Constellation). A cloud-native digital banking services provider, Constellation will integrate Finotta’s Personified platform into its own solution to give credit unions new resources to boost member engagement and satisfaction, as well as drive digital growth.
“More than 90% of consumers expect their financial institution to offer a modern digital banking platform, but this is table stakes,” Finotta Founder and CEO Parker Graham said. “The key is differentiating the experience based on what members need and want, which is financial guidance. Unfortunately, this is also where massive missteps are made. Many traditional PFMs inadvertently shame consumers for poor financial habits rather than encourage positive behavior, killing the overall experience. As a result engagement is down considerably.”
Founded in 2018 and headquartered in Overland Park, Kansas, Finotta made its Finovate debut at FinovateFall 2022 in New York. At the conference, the company demoed Personified, a suite of products that enable FIs to provide personalized financial guidance via their mobile banking apps. Personified helps financial institutions anticipate member and customer needs, increase product conversions, and deliver actionable financial guidance – all in a single solution. The platform helps banks and credit unions leverage the digital channel to generate more revenue, improve financial performance, and boost profitability for members and customers.
Last year, Finotta noted that its Personified platform had increased user engagement compared to other mobile banking apps, with an average use of 13 minutes per month per user. According to Graham, this compares favorably to the “less than one minute per month” that users spend on the average mobile banking app. Not only does this reflect a significant lack of engagement from users, it also limits the FIs ability to cross-sell other products and services. Finotta also pointed to a study from Oracle that suggested as much as 40% of customers believe that independent PFM apps are superior to the offerings provided by most financial institutions.
“Embedded (Finotta’s) technology into our platform will equip credit unions with the tools they need to thrive in the digital age while delivering personalized, seamless, and exceptional service to their members every step of the way,” Constellation SVP and Head of Product Aaron Oplinger said. “We look forward to the value this will bring our industry.”
Founded in 2017 and headquartered in Raleigh, North Carolina, Constellation Digital Partners is a leading provider of mobile and digital banking solutions for community-based financial institutions. The company is dedicated to empowering both credit unions and community banks with innovative solutions for mobile banking, online account management, personalized financial insights, and more. The company has raised $17 million in funding via a Series A round completed in 2020. Kris Kovacs is President and CEO.
Business banking platform Rho has partnered with Navan to launch a jointly branded tool that will allow Rho’s business clients to add and manage their Rho Corporate Cards directly within Navan.
The partnership is leveraging Navan Connect, a card-link technology that extends Navan’s No Expense Reports experience to authorized expense partners.
The new, joint tool offers business clients a unified interface that saves them from having to coordinate multiple applications across separate vendors, or having to manage different costs and workflows.
Rho has teamed up with Navan to launch a new, jointly branded tool that will help simplify the way businesses manage their finances.
Leveraging Navan Connect, the new co-branded solution will allow businesses to add and manage their Rho Corporate Cards directly within Navan after configuring the cards using the Rho platform. Businesses can use the new finance suite to manage corporate travel and expenses, enforce expense policy compliance, send payments, and close their books. The unified interface saves businesses from having to coordinate multiple applications across separate vendors, or having to manage different costs and workflows.
Launched in 2023, Navan Connect is a card-link technology that extends Navan’s No Expense Reports experience to authorized expense partners. Using this technology, businesses can embed travel and other spending policies with Rho, which will offer finance departments control of and visibility into employee expenditures.
“We’re excited to partner with Navan to help businesses simplify the finance stack and save time and money,” said Rho Co-founder and CEO Everett Cook. “The years we’ve spent building the world’s best business banking platform infrastructure opens up ample opportunities for Rho to explore compelling partnerships with world-class organizations like Navan.”
New York-based Rho was founded in 2018 to serve as an all-in-one financial platform for businesses and organizations. In addition to checking and savings accounts and credit cards, the company offers expense management, AP automation, treasury management, and now business travel expense tracking and management.
Formerly known as TripActions, California-based Navan was founded in 2015 and leverages AI to create an enhanced user experience around booking corporate travel. Navan has made four acquisitions and now counts 2,900+ employees across 40 markets.
“Small- and medium-sized businesses need a complete suite of financial tools to get them up and running quickly,” said Navan Expense CEO Michael Sindicich. “With Rho, Navan customers now have an out-of-box set of financial tools from a trusted financial partner to help them proactively control spend as they scale while increasing operational efficiencies so companies can focus on the objectives that matter most.”
Ireland-based digital banking and payment solutions provider CR2 has agreed to be acquired by Morocco-based Hightech Payment Systems (HPS).
The transaction will strengthen HPS’s value proposition in French-speaking markets in Africa and help the company expand into English-speaking Africa and Australia.
CR2 made its Finovate debut at FinovateFall 2014 in New York.
Irish digital banking and payment solutions provider CR2 has agreed to be acquired by Morocco’s Hightech Payment Systems (HPS). The move will bolster HPS’s digital banking and payment capabilities and consolidate the company’s status as a leader in the African market, especially in its Francophone regions. The acquisition also will help HPS expand in English-speaking Africa and Australia due to CR2’s strength in these markets. Terms of the acquisition were not immediately available.
“We are pleased to be joining Abdeslam and the team at HPS,” CR2 CEO Fintan Byrne said in a statement. “Together, we share a wealth of experience, a passion for innovation, and a relentless focus on customer success.” Byrne added that the acquisition aligns with CR2’s global expansion goals. “With additional scale comes even more opportunity to invest and innovate. This is an exciting time to be in the digital banking and payments technology sector,” Byrne said.
A Finovate alum for more than a decade, CR2 offers digital banking and payment solutions via its flagship platform, BankWorld. The platform gives more than 90 banks in 50+ countries a comprehensive suite of digital banking, digital wallet, and payment functionalities. HPS will combine CR2’s technology with its PowerCARD suite of payment solutions which is used by 500+ institutions in more than 95 countries. HPS further noted that CR2 will “contribute materially” to its financial bottom line, post-acquisition. CR2 generated revenues of €23.8 million in the 12 months leading up to June 2023.
“Today marks a significant milestone in the continued growth of HPS,” HPS Co-Founder and CEO Abdeslam Alaoui Smaili said. “CR2 has a differentiated and exciting capability set, which is a strong fit for HPS and adds significant depth and breadth to our platform.”
Founded in 1995, HPS is a multinational corporation that provides payment software and solutions for issuers, acquirers, card processors, independent sales organizations (ISOs), retailers, mobile network operators (MNOs), and more. HPS is headquartered in Casablanca, Morocco, and has been a member of the Casablanca Stock Exchange since 2006.
Headquartered in Dublin, Ireland, with offices in Dubai, Jordan, India, and Australia, CR2 most recently demonstrated its technology at FinovateFall 2014 in New York. Earlier this year, the company announced a strategic partnership with U.K.-based core banking and financial solutions provider Fimple.
This is a sponsored article by LiveBank by Ailleron
In this digital age, the banking sector is not just undergoing change; it is at the cusp of a revolutionary transformation that is poised to redefine the very fabric of financial services. This transformative wave is powered by the synergistic relationship between human intelligence and artificial intelligence (AI). Far from merely mechanizing existing processes, this collaboration aims to completely reimagine how banking services are delivered, making them more intuitive, efficient, and customer-centric.
Transforming Human-to-Human Interaction through Technology
At the heart of this transformation is the role of Generative AI. This advanced form of AI is transforming modern banking by enhancing the human element rather than replacing it, particularly in complex sales processes. For example, while simpler banking products have become largely automated and can be easily accessed online by customers independently, more intricate products – like those involving mortgages or business financing – still benefit significantly from human insight. However, AI tools in banking is not replacing the need for human interaction; instead, it enhances the advisory services provided by banking professionals, making these interactions more productive and customer-friendly.
Entirely Digital Mortgage Application Process
A vivid demonstration of this innovative approach was showcased by LiveBank in collaboration with ING Bank on the London stage. They illustrated how digitization could reinvent the mortgage process, which has traditionally relied heavily on face-to-face interactions and extensive paperwork. By integrating AI with digital technologies, LiveBank has transformed this process to better align with contemporary customer expectations, which include a seamless digital experience, personalized service, and simplified procedures that significantly cut down on processing times.
As a leader of Retail Banking in ING emphasized during a joint speech, “Customers seek the convenience of applying for a mortgage online, uploading required documents electronically, and monitoring their application’s progress in real-time. They also prioritize transparency, clear communication, competitive interest rates, and personalized guidance throughout the mortgage journey. Ultimately, they desire a smoother and more efficient experience compared to traditional paper-based methods.”
With 45% of consumers favoring digital channels for banking product purchases, LiveBank aligns perfectly with the modern client’s preferences. It streamlines banking operations and enhances customer service by offering real-time human-to-human assistance through the customer’s first-choice communication channel.
The entire presentation and more insights are available here.
How to Redefine an Online Mortgage Experience?
ING Bank has been expanding its remote customer service capabilities, particularly for clients interested in mortgage offerings. The journey began with the option to submit applications via phone through the Contract Center, which was later extended to include customers using the services of specialists in ING’s branches.
Recognizing the evolving landscape of customer expectations, ING took the initiative to introduce video call options, marking a significant advancement in providing clients with a seamless remote banking experience. This decision entailed evaluating both customer needs and advisor perspectives.
Success Story of ING Bank & LiveBank by Ailleron
To ensure alignment with customer expectations, ING conducted comprehensive research, actively seeking feedback and insights. Valuable suggestions emerged from this process, including the need for video meetings with specialists in local branches, especially in emergency situations.
In response to these insights, ING embarked on a journey to integrate customer expectations with the capabilities offered by video support tools. This strategic alignment not only enhances the remote banking experience but also underscores ING’s commitment to innovation and customer-centricity.
This transformation is crucial in today’s banking landscape, where customer expectations are increasingly geared towards digital solutions. The transition involves not only adopting new technologies but also rethinking the customer journey to make it as frictionless as possible. By reducing the need for in-person meetings and streamlining documentation, banks can address significant pain points, making the process quicker and more pleasant for customers while also optimizing operational efficiency.
The successful digital transformation of complex banking products like mortgages requires thorough organizational preparation. It entails understanding and integrating the needs and expectations of all stakeholders involved – both customers and bank employees. This preparation is critical to ensure that the new digital channels are not just new tools but are part of a holistic strategy to improve both customer and employee experiences.
Bank Branches and Their Role in Building Customer Relations
The recent pandemic has accelerated the shift away from traditional branch-based banking towards more dynamic, digital models. This shift has prompted banks to rethink the role of physical branches. Despite their reduced footfall, branches continue to play a critical role, particularly in fostering stronger customer relationships. Recognizing this, LiveBank has innovated a new approach where loan specialists are made available to clients through convenient video calls, allowing for digital collaboration throughout the loan application process. This approach not only maintains the personal touch that is often crucial in banking but also enhances convenience and efficiency.
Furthermore, LiveBank’s method allows clients to choose how they wish to engage with the bank, emphasizing the flexibility and client autonomy that modern customers desire. This model has proved successful, leading to a majority of remote interactions with over 400 branch mortgage specialists (60% of new meetings were on video) while maintaining high levels of customer satisfaction 4.9/5 – a testament to the effectiveness of integrating personalization with digital efficiency.
How to Increase Sales in Banking Using AI & GenAI Capabilities?
The expansive capabilities of Generative AI were further highlighted at FinovateEurope in London, where banking experts showcased how AI could elevate the credit process. AI assists bank advisors by managing vast amounts of data and providing insights, thereby enhancing their ability to offer tailored advice. Additionally, the use of advanced AI-driven avatars can pre-qualify customer needs, ensuring that when a client is handed over to a human advisor, the groundwork is already laid for productive interaction.
This blend of human empathy and machine precision is crucial. It leverages the strengths of both to optimize banking operations and tailor services to individual needs, thereby not only elevating the efficiency and effectiveness of banking services but also enriching the customer experience with a personal touch that technology alone cannot provide.
Human Empathy Meets Machine Precision to Optimize Banking Operations
LiveBank exemplifies this future, standing at the forefront of the transformative journey in banking. Its platform is meticulously designed to integrate the capabilities of humans and machines seamlessly, ensuring that every customer interaction is a blend of efficiency, personalization, and security. The key to their success lies in finding the optimal balance between human and artificial intelligence, using the unique attributes of both to deliver high-quality service in real time.
In conclusion, as the banking sector moves forward, the integration of human and machine intelligence holds incredible potential. Innovations like those pioneered by LiveBank are not just enhancing operational efficiencies; they are fundamentally enriching how customers experience banking. This is a visionary journey, one that promises to transform the landscape of financial services and set new standards for the banking industry worldwide.
Mateusz Grys, LiveBank by Ailleron speaker said, “Generative AI is a major trend reshaping our industry, but the human aspect remains critical, especially in sales and advisory roles. It’s crucial for dealing with complex banking products that customers may encounter only once in their lifetime. By integrating AI, we enhance these interactions, but the empathy and understanding of human advisors are irreplaceable when navigating such significant financial decisions.”
With neobank Monzo’s big investment and multi-billion dollar valuation on one side and the continued woes of BaaS provider Synapse on the other, “interesting times” continue to characterize the fintech landscape as we slide into the summer months.
Be sure to check our Fintech Rundown all week long for the latest updates and fintech headlines.
Insurtech
Indian insurtech CoverSureraises $4 million in pre-Series A funding in a round led by Enam Holdings.
