Yes, Banks Can Compete with Apple’s New Credit Card

What’s in your wallet? Or rather, what’s in banks’ clients’ wallets? Some sexy competition appeared on the market yesterday, as Apple announced the pending launch of its own credit card in collaboration with Goldman Sachs and Mastercard.

The card is touted more for its mobile and digital qualities than its shiny titanium finish. Despite the shine, however, many of the card’s features and offerings aren’t new. And that’s good news for banks. While traditional financial institutions aren’t as sexy as tech companies such as Apple, they are generally viewed as more trustworthy. And with that kind of foundation, all banks need to do is piece together the features into their own credit card offering and market it properly.

Fortunately, there are plenty of fintech firms out there to help. Here are some of the features Apple is promoting and a list of corresponding fintechs that can help banks take the same approach.

Physical card security

Apple boasts a titanium card with the customer’s name etched on the front– no credit card number, no cvv code, no expiration date. All of that information is tucked away inside the app. Physical card innovator Dynamics takes a similar (though admittedly less visually appealing) approach. The Pennsylvania-based company offers a computer-in-a-card that hides part of the card number, the cvv code, and expiration date on the physical card until the consumer enters their PIN into the card. As an added bonus, Dynamics also offers in-card loyalty and rewards features, as well as a card that hosts multiple numbers, allowing customers to toggle between debit and credit cards.

Chat functionality

As a company that is known for simplifying technology, Apple is taking a similar approach with its customer service. “Have a question? Just text,” is the message the company features on its card website. Fortunately, there are plenty of fintechs that help banks simplify their customer experience. Two such companies are Finn.ai and Clinc, both of which leverage AI to save banks money on customer service representatives, while simplifying and expediting access to answers via a chat interface.

PFM

One way to win over customers is to convince them you’ll help them organize their finances and ultimately save them money. That’s why Apple is offering in-app PFM capabilities. And while the technology hasn’t changed much since it debuted before the fintech craze, the colorful user interface is beautiful enough to convince anyone to want to look at their spending behavior.

Banks have seemingly endless options to compete with this feature. And while most financial institutions currently offer some sort of PFM capabilities, it’s worth looking at it from a superficial point of view. Utah-based MX and Sweden-based Tink both offer visually-pleasing interfaces that are arguably more beautiful than Apple’s and are backed by powerful PFM engines.

Mobile app security

Apple’s iPhone holds the hardware for both fingerprint and facial recognition technology, and since the company is reinforcing its focus on security, it is leveraging biometrics for account access. With the right software, banks can leverage fingerprint and facial recognition technology as well. Jumio, IDology, and Mitek all offer technology banks can implement for fast account access, as well as account onboarding.

Fast onboarding

With access to consumer data, Apple has an advantage of being able to quickly onboard new consumers using existing consumer information. There are multiple fintechs that help banks onboard consumers quickly, as well, including Digital Onboarding, Q2’s Gro Solutions, and Fenergo. Digital Onboarding motivates customers to open new accounts using incentives and gamification. Gro Solutions touts the ability for customers to open and fund accounts in under four minutes. And Fenergo takes a holistic approach to onboarding, providing banks a lifetime view of the client to help perform data refreshes, ongoing due diligence, and upsell and cross-sell opportunities.

Rewards

Credit card rewards programs may seem like a feature of the past, but rewards are certainly still relevant. With its new card’s rewards program, Apple once again seeks to simplify things by offering consumers daily rewards. Two fintechs, Cardlytics and Cartera Commerce, offer tried and true loyalty and rewards programs. These offerings not only boost consumer loyalty, they also offer banks further insight and analysis into consumer spending.

Apple’s new credit card is shipping this summer. Fortunately for banks, fintechs are here to help them compete.

Finovate Alumni News

On Finovate.com

  • Capsilon and Blue Sage Drive Automation in MortgageTech.
  • Tandem Chooses Token as PSD2, Open Banking Partner.
  • Yes, Banks Can Compete with Apple’s New Credit Card.

Around the web

  • TurnKey Lender launches psychometrics for credit decisioning.
  • Xero partners with Aussie government’s digital change project.
  • Avaloq 2018 revenues rise to $582 million, a 6% YoY rise.
  • HarborOne Bank selects Baker Hill to provide direct and digital marketing services
  • Affinity FCU selects Digital Onboarding for automated new account activation.
  • Zillow’s Mortech partners with Roostify to improve the digital mortgage experience.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alums Join MassChallenge’s 2019 FinTech Inaugural Program

Digital Onboarding, SizeUp, and ForwardLane are among 21 startups that will take part in the 2019 MassChallenge FinTech inaugural program. The program runs from January to June, and will support startups as they work with the accelerator’s partners to develop solutions in asset management, insurance, retail and commercial banking, e-commerce, and transportation. Specific challenge areas include developing AI-powered research assistance, big data for SMEs, and student financing.

“Our inaugural cohort represents trailblazing technologies that advance financial services, from AI-powered on boarding platforms to modern giving solutions,” Program Director of MassChallenge FinTech Devon Sherman explained. “We look forward to structuring and driving meaningful, outcome-driven partnerships between startups and enterprises that tackle some of the industry’s biggest pain points and opportunities.”

Participating startups will also have access to MassChallenge FinTech and FinTech Sandbox’s enterprise readiness program, as well as the FinTech Sandbox’s data and resources. MassChallenge FinTech will award a total of $250,000 in cash prizes at the conclusion of the six-month program, at zero cost and for zero equity.

Also participating in the 2019 cohort are:

  • AlphaSense
  • Cake
  • Catapult HQ
  • Coalesce.ai
  • Datavore
  • Diffeo
  • Edmit
  • eGiftify
  • Elsen
  • Fincura
  • GainLife
  • LifeSite
  • Pinkaloo Technologies
  • Posh
  • Surround Insurance
  • TellusLabs
  • WalletFi
  • Zylotech

MassChallenge FinTech is supported by a public-private partnership that features Massachusetts Mutual Life Insurance Company (MassMutual), Putnam Investments, Fidelity Investments, Citizens Bank, John Hancock, and the Massachusetts Competitive Partnership (MACP) among its founding partners. The program’s challenge partners include Eastern Bank, AARP, Columbia Threadneedle Investments, Walmart, and the Massachusetts Bay Transportation Authority (MBTA). FinTech Sandbox, Wells Fargo Startup Accelerator, and Brandeis International Business School are community partners of the program.

Explaining his company’s decision to partner with MassChallenge FinTech, Head of Innovation and Advice for John Hancock Steve Dorval said, “To us, innovation means looking for new tools, new technologies and new ways of working that can enhance the businesses we’re already in or give us insights into creating new opportunities.” He added that MassChallenge FinTech enabled John Hancock to “engage with intelligent passionate people that are solving important problems.”

Digital Onboarding demonstrated its platform at FinovateFall 2018. Founded in 2015 and headquartered in Boston, Massachusetts, Digital Onboarding announced earlier this month that it was partnering with Hudson River Financial FCU. The company will help the $57 million member-owned financial cooperative improve access to account-related benefits.

Making its most recent appearance on the Finovate stage at FinovateEurope 2016, SizeUp helps banks empower their SME clients with business insights that can drive increased customer acquisition, retention, and engagement. Founded in 2011 and based in San Francisco, California, SizeUp was featured by Bplans earlier this year in its look at 85 of the Best Business Tools for Startups.

ForwardLane announced an expansion of its menu of AI tools this fall, a move the company believes will help bring the benefits of artificial intelligence to small and mid-sized financial advisors. Founded in 2015 and headquartered in New York City, ForwardLane demonstrated its cognitive productivity solution for wealth management at FinovateSpring 2016, leveraging machine learning to deliver personalized investment advice to mass affluent investors.

Finovate Alumni News

On Finovate.com

Around the web

  • Finicity CEO Steve Smith honored as a 2018 HousingWire Vanguard.
  • Ohpen launches the Ohpen API Portal (OAP) in beta.
  • PYMNTS talks with Entersekt SVP of Product Niel Bester about consumer trust.
  • Kony teams with PSECU to deliver digital banking technology.
  • Hudson River Financial FCU selects Digital Onboarding to enhance new member experience with updated onboarding

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateFall Sneak Peek: Digital Onboarding

A look at the companies demoing live at FinovateFall on September 24 through 26, 2018 in New York. Register today and save your spot.

Digital Onboarding helps banks and credit unions turn account holders into engaged and profitable relationships by making it easy for customers and members to adopt account-related services.

Features
The platform’s E.W.E. machine learning capability helps marketers automatically test and discover the most effective message cadence, content, and incentive offers to drive optimum performance.

Why it’s great
While most marketers say that they are not using most marketing automation system features effectively, the Digital Onboarding platform is designed to to be simple and cost efficient.

Presenters

Ted Brown, CEO
Brown cofounded Digital Onboarding after leading sales at Andera, a company that first made it possible to open deposit accounts online. (Andera was acquired by Bottomline in 2014).
LinkedIn

Jonathan Crossman, CTO
Before cofounding Digital Onboarding, Crossman gained more than a decade of experience working in web and mobile development for companies like Digication and DePuy Synthes.
LinkedIn

Finovate Alumni News

On Finovate.com

  • Starling, Anorak Merge Insurtech with Mobile-Only Banking.

Around the web

  • Fiserv to power Philippine Veterans Bank’s digital transformation.
  • Token.io announced using public bank APIs to conduct end-to-end payments for U.K. banking group, CMA9, the first PISP to do so.
  • Housing Wire profiles Mortgage Cadence‘s LOS, Borrower Center.
  • Thomson Reuters launches new targeted reporting solution, RTS 27, for newly-registered MiFID II Systematic Internalisers.
  • NICE provides its Desktop Automation solution to Latin American CRM and BPO solution provider, Liq.
  • Tinkoff Bank enables movie ticket booking on the iOS version of its mobile app.
  • NCR releases managed services bundle for Community Financial Institutions (CFIs) to NCR channel partners.
  • WePay appoints Jennifer Parker as Chief Revenue Officer.
  • Neustar and Thunder join forces to deliver better customer experiences.
  • BanQu launches partnership with Anheuser-Busch InBev to revolutionize supply chain transparency in Zambia.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Digital Onboarding to Enhance Customer Experience for Mariner’s Bank

Mariner’s Bank, an independent community bank based in Bergen County, New Jersey, has partnered with Digital Onboarding to make the onboarding process easier for new customers. Digital Onboarding’s automated new account activation platform will also help the $390 million bank boost customer engagement by encouraging and motivating its customers to take advantage of a variety of account-related services.

Calling the choice of Digital Onboarding “a no-brainer,” Mariner’s Bank President and CEO Frank Giancola said the new technology would enable the bank’s professionals to spend less time shuffling paper and more time helping people. “Every time we open a checking account, we have the opportunity to build a relationship and it’s critical that we make it as simple as possible for new customers to enroll in online banking, download the mobile app, and sign up for direct deposit,” Giancola explained. “We get one bite at the apple with new customers and, if we rely on welcome letters and onboarding phone calls, we’ll probably never see them again.”

Digital Onboarding CEO Ted Brown underscored the issue of how time-consuming customer acquisition can be. “There is too much emphasis on new account acquisition in the financial services industry,” he said.  “Without a strategy to engage new customers after an account is opened and turn them to profitable relationships, all you’re doing is pouring water into a leaky bucket.

The Digital Onboarding platform helps FIs execute this strategy by using SMS and email reminders, a customized activation webpage, and gamified incentives rather than paper brochures and phone calls. Having customers take broader advantage of their accounts, according to the company, leads to greater customer satisfaction, as well as improved conversions and cross-selling opportunities for FIs. Banks and credit unions can go live with the platform in weeks; no core system integration required.

Founded in 2015 and headquartered in Boston, Massachusetts, Digital Onboarding demonstrated its platform at FinovateSpring 2018. In June, the company announced a partnership with Foothills Credit Union, a California-based community institution with more than $100 million in assets. The previous month, Digital Onboarding teamed up with Massachusetts’ Belmont Savings Bank ($2.75 billion in assets). Additional partnerships forged by the company in 2018 included deals with Somerset Trust Company (more than $1 billion in assets) and Ohio Healthcare FCU ($80 million in assets) in March, and with 700,000-member Digital Federal Credit Union (better known as “DCU”) in February.

Join Digital Onboarding next month as the company demonstrates its latest technology at FinovateFall 2018 in New York.

Finovate Alumni News

On Finovate.com

  • Standard Chartered Pilots Blockchain-Based Trade Guarantees.
  • Digital Onboarding to Enhance Customer Experience for Mariner’s Bank.

Around the web

  • NICE introduces Proactive Fraudster Exposure functionality to its Real-Time Authentication solution for call centers.
  • The Paypers features Onfido CEO Husayn Kassai on the role of technology in the transformation of UX.
  • Co-founder and CEO of comScore, Dr. Magid Abraham, joins Roostify’s board of directors.
  • AlphaPoint integrates with VerifyInvestor.com to provide clients with a new option for compliant investor onboarding.
  • Fortytwo Data opens its first international office in Kiev, Ukraine.
  • Insuritas to launch digital insurance agency platform for Eagle Community CU.
  • Quadient listed as a Top Customer Journey Mapping Vendor in Ovum Report.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Temenos Teams with Open Banking API Platform LUXHUB.

Around the web

  • Revolut and Trunomi earn recognition at the Europas Awards.
  • Enveil announces ZeroReveal Compute Fabric technology that offers organizations an encrypted data platform to protect against Nation-state level threats.
  • The Financial Brand features Digital Onboarding.
  • Jack Henry & Associates promotes Mark Forbis to EVP and CTO.
  • Jason Yetton moves on from SocietyOne after two years as CEO (paywall).

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Gusto Launching its Own Yelp for Accountants.
  • Fintonic Bolsters Platform’s Loan Options with BBVA Partnership.

Around the web

  • Multiple-time Best of Show winner Ondot Systems launches its digital card services platform.
  • Thomson Reuters and ICAP announce five-year extension of their partnership.
  • TransferWise lands its first big European bank customer with new agreement with France’s BPCE Group.
  • NY Times features Unison’s approach to shared equity home ownership investment
  • Taulia has record $4.5bn First Quarter.
  • Cardlytics refinances credit facilities with Square 1 Bank.
  • Ripple to give $50 million to universities including Princeton, MIT, and UCL for blockchain research.
  • Foothills Credit Union selects Digital Onboarding for new member onboarding technology.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.