In November last year, Amazon’s UK website told customers that it would no longer be accepting payments via UK-issued Visa credit cards. This was due to a dispute with the financial services corporation over the high fees charged for processing transactions. The announcement sent shockwaves across the market, and a reported 4.7% slump in Visa shares erased USD 22 billion in value.

Amazon’s conflict with Visa

This was not the first time that the ecommerce giant had caused disruption. In August 2021, customers in Singapore were informed that Amazon would be implementing a 0.5% surcharge on all orders made using a Visa credit card. This was followed up a month later with a similar announcement in Australia, although both of these were later dropped.

In the United Kingdom, more than 50% of all payments are credit card-based, with Visa having an 82% market share. This movement would have affected millions of consumers who use a Visa credit card to buy products. In addition to this, some of the UK’s biggest banks, including HSBC, offer Visa on credit cards. Meanwhile, Barclaycard, the UK’s biggest credit card company, only uses the Visa network.

It was suggested that Brexit was to blame for this maneuver. Post-Brexit, an EU cap on interchange fees that had applied to the UK was no longer relevant. This allowed card networks to raise their charges.

Interchange fees vary from country to country. The EU has increasingly sought to regulate these fees, hoping to create equality across their member countries and increase card competition in the EU single market. They introduced a cap of 0.3% for credit cards in 2015, which was amended in 2019 to include online or phone transactions at 1.15% and 1.5% respectively.

Due to the cross-border nature of transactions now between the EU and the UK, with Amazon’s transactions being processed in the EU, Amazon would have been liable for the 1.15% interchange fee on an online purchase.

Visa bites back at Amazon

Amazon stated that the fees were an obstacle to them providing the best prices for customers. Meawhile, Visa accused Amazon of decreasing consumer payment options.

This isn’t the first time a large retailer has challenged well-established payment providers. Yet, Amazon had been observed pressuring Visa to lower its fees for some time.

This is a sign of the growing frustration from retailers over the costs associated with major card networks. The dispute could be a sign for the credit-card industry, showing that large retailers have the power and potential to seriously disrupt the banking sector.

Fortunately, the dispute between Amazon and Visa seems to have been settled now. The two businesses having reached an agreement after weeks of negotiations to postpone the ban for UK users.

It is also worth noting that the Payment Systems Regulator launched a review last year. This found that interchange fees had significantly increased since the EU cap was lifted. The Regulator is considering whether action needs to be taken on the issue.

Is Amazon entering the payment space?

Although Amazon and Visa seem to have buried the hatchet, for now, is this a sign of things to come? Is Amazon building its own next-generation bank?

Fintech startups had been expected to be the most likely disruptors. Yet, big technology companies like Amazon are moving towards entering the financial services sector themselves.

Amazon has an extensive customer base, digital prowess, and customer experience skills, alongside services such as Amazon Cash and Amazon Pay. in addition to offering working capital loans for SMEs and their own co-brand credit card, Amazon seemingly has everything needed to succeed in banking.

There has even been speculation for years that Amazon will offer a checking account. With customers replacing a credit card with an Amazon bank account, Amazon would be able to avoid millions of dollars in fees from credit companies altogether.

Have credit cards reached their expiry date?

Roger De’Ath, Head of Ecommerce at TrueLayer, believes technology offers an opportunity. Tech could offer retailers solutions that allow them to break away from the grasp of card networks and the invisible layer of hidden costs and unwieldy payment structures they demand.

Consumer expectations are rising along with new technologies, and as consumers grow used to easy and convenient ecommerce payments. Banks and credit card companies may have to reorient and accelerate their rate of progress in order to remain relevant. Otherwise, they risk being removed from forward-thinking retailers like Amazon, Facebook, and Google, ultimately losing access to the market.

The likes of Visa, Mastercard, and American Express are already facing competition from challengers such as Affirm, Afterpay, Klarna, and Sezzle that offer buy now, pay later (BNPL) services. Klarna particularly, until recently, had seen impressive growth with its customer base expanding from 7 million to 16 million since the beginning of 2020.

Of course, we recently saw Klarna’s valuation plumment following a round of lay-offs made in anticipation of a coming recession. Yet, these issues had everything to do with a coming financial crunch, and little to do with the potential of the BNPL market.

BNPL brands are still chipping away at the market share for credit card companies. GlobalData’s research reports that 47% of under 35s today do not own a credit card. Instead, young people are turning more and more to BNPL schemes that act as an entry product for younger consumers new to credit. Is this a sign that lenders need to offer BNPL to stay relevant to retailers?

The benefits of BNPL

BNPL services offer interest-free purchases, have softer credit checks, and are often manageable via apps. This makes them more accessible and convenient than having to apply for a credit card, appealing to the younger, more technology-savvy generations. BNPL has changed consumer expectations of the borrowing experience and expanded the role lenders can play in shopping journeys.

Ultimately, in order to sustain profitable growth, credit card companies may need to rethink their products, economics, and value propositions. Otherwise, they may be squeezed out by, not only the new fintech kids on the block, but by powerful retailers willing to throw their weight around. Re-imagining products to meet today’s consumer needs, alongside attracting younger consumers with tailored solutions, should be at the forefront of the industry’s minds.

The three Rs of BNPL could win over Amazon

Indeed, established lenders are empowered by ‘three Rs’:

1. Reputation
2. Regulation
3. Recession

Established lenders have an existing reputation in the market, a relationship with the regulators who currently have BNPL in their sights, and the resources to outlast the coming recession. Established lenders offering a BNPL position could take over the market and offer something valuable to eretailers like Amazon.

To do that, however, you need the right technology, and digital transformation is, of course, far from easy. That’s where the FintechOS platform comes in.

To find out more about how FintechOS can turn any bank into a digital BNPL provider, see our BNPL solution page.

Via: https://fintechos.com/

Embracing meaningful change and flexibility can set you up for success in many areas:  

• Market relevance
• Risk mitigation
• Customer satisfaction
• Partnerships and collaboration
• Future-proofing your business
• Talent attraction and retention
• Gaining a competitive advantage
• Innovation and modernization 

As Heraclitus puts it, “change is the only constant”, and now embracing change is no longer optional – it’s a must. Banks and credit unions that proactively embrace meaningful change are better equipped to navigate the modern-day business landscape and position themselves for long-term success. 

This was the topic of discussion during our recent webinar, A Framework for Change: The First Step and Beyond with Tower Community Bank and The Financial Brand. Mike Hughes, VP of Product Marketing at FintechOS, interviewed Brett Hollenbeck, Virtual Bank Director at Tower Community Bank, on his role designated to bringing meaningful change into the bank. 

Below are a few highlights of their discussion. 

Why Does Change Matter? 

Integrating meaningful change is difficult for any organization, but especially for traditional banks and credit unions dealing with obstacles like outdated processes and existing legacy systems. 95% of incumbent banks say they are still hindered by legacy systems and most struggle to attract and retain top tech talent.  

This directly affects the customer experience, with most customers agreeing that their banks don’t integrate well into their lifestyles. So, it’s time for banks and credit unions to look onwards – towards a more innovative future – by identifying new profit pools, channels of distribution, and ways to automate and streamline back-office processes. 

But before you can drive change at your financial institution, consider if your bank or credit union is ready to take the leap. 

How to Get Started with Meaningful Change 

Fintech expert, Ron Shevlin, recently claimed that innovation as a management fad is dying. Why? Not because innovation is in any way bad, but because organizations aren’t ready for disruptive innovation.  

Shevlin says, “successful innovation requires a supportive infrastructure, culture that embraces experimentation and failure, and an organization-wide commitment to change”. He stresses that most companies don’t have these key factors in place yet are surprised when miracles don’t happen overnight. 

The success of innovation heavily relies on an organization’s ability, and willingness, to change.  

Tower Community Bank Embraces Meaningful Change 

Nashville-based institution, Tower Community Bank, was ready to embrace meaningful change that would differentiate them further in their current market. While they came from traditional roots, they were forward-thinking and wanted to be on the front edge of trying new tools and technologies. 

They set their sights on improving their current customer experience, attracting new customers in the community, and generating additional revenue sources. To accomplish this, the bank hired change and process management expert, Brett Hollenbeck, MBA, to lead digital innovation and provide the bank with a fresh set of eyes. 

Here’s Brett Hollenbeck’s guide to embracing change: 

1. Designate a Change Agent – A change agent, in this case Hollenbeck, is someone who will lead the change and innovation happening organization-wide. This person plays an instrumental role in getting everyone on board, identifying key areas to initiate meaningful change, keeping timelines on track and individuals accountable, and later acting as a liaison between the bank and their chosen technology provider.
2. Idea Generation – This is the brainstorming process. The change agent needs to take the time to identify the bank’s future goals and strategic vision, as well as launch discussions with people throughout the organization to gain feedback on first thoughts and potential obstacles. This is the time to dig deeper and disregard “this is just the way we do it” as an answer. Question how things have been done and make sure current investments are truly valuable to the customer.
3. Identify Opportunities – Identify what the financial institution is already doing well and how you can take a different approach to the problems you’ve been seeing for a while. Ask customers and clients what they like about your business, why they’ve chosen to invest in you, and what their main pain points are. You can’t be everything to everyone, so really home in on what’s working best.
4. Balance Priorities – With so many great ideas in mind and projects in development, it can be tough to juggle it all. Especially when each internal department has its own priorities. Make sure the person calling the shots (the change agent, CEO, or other organizational leader) is prioritizing the things that will make the “biggest splash”. The prioritized investments should be those most meaningful to your customers.
5. Overcome Challenges – There will be many obstacles in the way of change and innovation, including compliance, regulations, and budget. Overcoming these challenges requires careful planning, effective communication, an adaptable culture, and strong leadership. 

Embracing meaningful change is difficult for every organization, but it is much easier for those who can get their team on board to execute a well-researched plan. 

Putting Meaningful Change into Action 

For most financial institutions, especially local banks and credit unions, large technology innovation projects are handled by a technology vendor or fintech provider. Often, internal IT teams don’t have the skills, numbers, or resources to implement new tools and technologies, especially if they’re already battling existing legacy systems.  

When it comes to evaluating and choosing a new tech vendor, be on the lookout for red flags. A good vendor will have the following things in place: 

1. A flexible and highly-customizable product – This makes handling changes in the market a breeze instead of being forced to start back at square one.
2. Constant communication – Problems are bound to arise but maintaining an open dialog builds trust on both sides.
3. Customer-focused – You want a partner who knows your industry and has experience implementing the products your customers want.
4. Clear and measurable timelines – set from the start, keeping both parties accountable and aware of expectations.
5. Aligned values – Get to know how the organization operates, the people you’ll be working with closest, and how they perform under stress.
6. Previous customers speak highly about their deliverables – Don’t hesitate to gather unbiased feedback.  

Lastly, make sure your chosen tech provider can enable you to launch new products and services quickly, so you don’t miss out on capturing competitive market share as opportunities arise.  

Conclusion: Embracing Meaningful Change is a Marathon not a Sprint

Embracing meaningful change is a journey that requires commitment, vision, and adaptability. Financial institutions that choose to proactively navigate this path are better positioning themselves for long-term success as they remain relevant and resilient in today’s ever-changing financial landscape.  

Via: https://fintechos.com/

Eligible U.S. PayPal customers who purchase PYUSD will be able to transfer PYUSD between PayPal and compatible external wallets, send person-to-person payments using PYUSD, fund purchases with PYUSD by selecting it at checkout and convert any of PayPal’s supported cryptocurrencies to and from PYUSD.

PayPal says that when you buy or sell cryptocurrency, including when you check out with crypto, it will disclose an exchange rate and any fees you will be charged for that transaction.

“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world,” PayPal wrote in a press release. “Most of the current volume of stablecoins is used in web3-specific environments — PayPal USD will be compatible with that ecosystem from day one and will soon be available on Venmo.”

John Doe, LineThemes

As an ERC-20 token issued on the Ethereum blockchain, PayPal says PYUSD will be available to a growing community of external developers, wallets and web3 applications; can be easily adopted by exchanges; and will be deployed to power experiences within the PayPal ecosystem.

A stablecoin is a type of cryptocurrency whose value is tied to an external asset, such as the U.S. dollar. There is some controversy around stablecoins. Last year, Meta ended up abandoning its plan of having its own stablecoin, called Diem, after regulatory backlash. PayPal itself paused working on its stablecoin earlier this year amid regulatory scrutiny of crypto, as reported by Bloomberg at the time.

PayPal first introduced crypto services back in 2020 when it began letting users in the U.S. buy, hold and sell cryptocurrencies. Then, in 2021, PayPal announced the launch of Checkout with Crypto, a feature that allowed consumers to check out at millions of online businesses using cryptocurrency. Last year, the company gave users the ability to transfer cryptocurrency from their accounts to other wallets and exchanges.

“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” said PayPal CEO and president Dan Schulman in a press release. “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”

PayPal says Paxos will publish monthly reports detailing the assets backing PYUSD starting next month. Paxos will also publish a public third-party attestation of the value of PYUSD reserve assets.

PayPal’s shares fell 7% in extended trading last Wednesday as investors were disappointed by the company’s quarterly operating margin. The payment company’s adjusted operating margin for the quarter came in at 21.4%, missing its forecast of 22%.

Via: https://techcrunch.com/

Together, embedded finance and embedded fintech have led to a new era of financial innovation where traditional industries can integrate financial services seamlessly into their products and services. While the phenomenon has opened doors for banks and credit unions, embedding products does not come without challenges.  

Learn how businesses can leverage the evolving landscape to revolutionize the future of financial services. 

What is Embedded Finance? 

Embedded finance refers to the integration of financial services into non-financial products or services, such as websites, mobile apps, and business processes. While some consider embedded finance a threat to banks and credit unions, it presents them with a considerable opportunity because financial services still need to be provided by licensed financial institutions. 

By leveraging APIs and partnerships with fintech providers, banks and credit unions can seamlessly offer financial services such as payments, lending, compliance, and more to their partners’ customer bases at a much lower acquisition rate. It is estimated that by 2026, embedded finance transactions will reach $7 trillion in value and account for 10% of all financial transactions in the U.S.  

Who’s Using Embedded Finance? 

Many consumers have already embraced embedded financial products and services from their favorite brands and are looking forward to future capabilities. Gamers are interested in in-game accounts, while home fitness fans are interested in getting health insurance based on their activity habits, and home DIYers are interested in savings accounts that automatically set aside money for large projects.  

According to our report with Cornerstone advisors,  

Among consumers who already get a financial product from a non-financial brand, a third said the product caused them to spend more money with the brand, three in 10 said they now choose the brand over its competitors more often, and a little more than a quarter feel more loyal to the brand.

John Doe, LineThemes

To that end, brands can financially benefit beyond the initial launch of embedded products or services.  

What is Embedded Fintech? 

Essentially the opposite of embedded finance, embedded fintech is all about distributing products and services from non-financial institutions, such as fintech, through traditional financial institutions. Embedded fintech is known as the integration of fintech products and services into a financial institution’s product sets, websites, mobile apps, and business processes.  

The integration is made possible through APIs that allow different systems to communicate and exchange data securely. By embedding financial services such as payments, lending, insurance, and wealth management into their offerings, businesses can give customers an elevated experience.  

Embedded fintech has allowed consumers to better manage their finances. 47% of Gen Z and 44% of Millennials have subscribed and pay for fintech services each month. Annually, fintech spend has risen to more than $13 billion (about $40 per person in the US). 

Embedding Fintech into Financial Products 

While many consumers are getting embedded fintech products directly from fintech providers, they have expressed significant interest in obtaining services directly from their trusted bank or credit union. Here are a few services they would like to bundle with existing accounts: 

• Identity theft protection
• Data breach protection
• Cell phone damage protection
• Purchase protection
• Extended warranties
• Bill negotiation service
• Subscription-cancelling service
• Personal/family data storage
• Child identity theft protection 

Teaming up with a tech provider to embed fintech solutions into existing products can expand financial institutions’ revenue sources. A great way to accelerate the launch, servicing, and expansion of financial solutions is by using a fintech enablement platform.  

Fintech Enablement: The Holy Grail for Banks 

A fintech enablement platform comes with the infrastructure, tools, and APIs needed to seamlessly connect businesses and financial service providers. This includes prebuilt and customizable product definitions, data models, customer journeys, SaaS ecosystem connectors, and non-technical tools used to simplify the innovation process.  

A fintech enablement platform also empowers businesses to offer a wide range of financial services without the need for extensive in-house development. This type of platform is designed with the understanding that banks and credit unions need to innovate and modernize, simultaneously.  

Lastly, these platforms can improve customer journeys by implementing point-of-sale lending capabilities, end-to-end digital account onboarding processes, SME lending models based on captured data, and more.  

Capitalizing on Embedded Fintech Opportunities 

When it comes time to build, develop, and deploy new products or services – using a fintech enablement platform or not – there are three areas all banks and credit unions should focus on: working around core systems, product development, and skills and organizational structures 

Stubborn, inflexible core systems are the last thing financial institutions want to pour money into. Especially when there are exciting new products to develop and introduce to customers.  

Thankfully, with the shift towards the cloud and open APIs, more vendors are putting together low-code/no-code software platforms – such as FintechOS’s fintech enablement platform – to reduce dependency on the core and instead shift investments to product deployment or upskilling/reskilling the internal workforce. 

Navigating Challenges 

While the opportunities associated with embedded finance and embedded fintech are vast, financial and non-financial institutions alike must navigate the challenges associated with this evolving landscape. 

• Regulatory Environment – As embedded finance blurs the lines between different industries, regulatory frameworks must adapt. Compliance becomes more difficult as financial regulations and data privacy requirements to mitigate legal risks evolve.
• Security and Trust – With the integration of financial services, businesses must prioritize security measures to protect sensitive user information and transactions. Establishing robust cybersecurity protocols and leveraging trusted partners are critical to maintaining trust with customers.
• Technology Integration – Integrating financial services into existing platforms requires technical expertise and seamless integration. APIs can ensure smooth user experience.  

Partnering with a trusted fintech provider can make navigating these challenges a lot easier for banks and credit unions. 

The Future of Embedded Opportunities 

Embedded fintech is not a passing trend, but a fundamental shift shaping the future of financial services with opportunities for businesses across industries. Financial institutions armed with a customer-centric mindset and willingness to adapt and collaborate will see the most success in today’s evolving landscape. 

To learn more about capitalizing on embedded opportunities and how fintech enablement can reduce dependency on legacy systems, download our recent report with Cornerstone Advisors. 

Via: https://fintechos.com/

The UK central bank wants to create a team of up to 30 people to oversee the project, according to a report by the Times.

“A team of 30 seems like quite a significant resource to focus on the digital pound,” Ian Taylor, an adviser to the trade association CryptoUK, told the Times. “It shows the impact it would have, and that the bank are serious about it.”

Ian Taylor, CryptoUK

The Bank in late March posted openings for a digital pound solution architect “to explore the technology design and architecture options for a potential retail CBDC”, and a digital pound security architect, whose role will be “to explore and develop secure technology design and architecture options for a potential retail CBDC”.

The job ads state: “HM Treasury and the Bank of England have recently issued a Consultation Paper setting out an assessment of the motivations and design choices for a potential digital pound, alongside a Technology Working Paper which outlines our emerging thinking on CBDC technology. These papers signal that our work will now move onto a design phase, which will look at the technology and policy requirements for a digital pound.”

In February, Bank of England deputy governor Jon Cunlifffe told a committee of MPs that a digital pound has a better than 50/50 chance of coming to fruition.

“These are big projects… this would be a very serious thing that would have to be resilient, fraud-proof, secure,” Cunliffe said. “If we just wait until we say OK now we think it’s needed, we will be five years behind.”

Via: https://www.finextra.com/

The banking industry is undergoing a profound tech transformation. As technology continues to reshape customer expectations and disrupt traditional business models, it is imperative for banks in the UK and Europe to reassess their strategies and adapt to the evolving landscape. To deliver value to their clients and remain competitive, banks must proactively invest in technology.  

While we recognize banks face many challenges at any given time, they should consider including transformative projects in their next budget. 

The Ever-Growing Challenges Facing UK Banks

The landscape in which banks operate is evolving rapidly, presenting a series of challenges that cannot be ignored. These challenges encompass rising customer expectations, fierce competition from fintech start-ups, evolving regulatory compliance, and security concerns, as well as the need for operational efficiency and cost optimization. Let’s explore each of these challenges and understand why embracing technology is crucial for banks to overcome them. 

1. Rising Customer Expectations 

Today’s customers have grown accustomed to seamless digital experiences, personalized services, and instant accessibility. They expect not only traditional deposit and credit products but also insurance and embedded finance options. Meeting these expectations requires banks to invest in technology that enables them to provide a superior customer journey. By leveraging advanced technologies such as artificial intelligence (AI), data analytics, and automation, banks can create tailored experiences that cater to individual preferences. From intuitive mobile applications to AI-driven chatbots, technology empowers banks to meet and exceed customer expectations. 

2. Fierce Competition from Fintech Start-Ups 

Fintech start-ups have emerged as disruptors in the financial services sector, challenging traditional banks with their innovative offerings and streamlined processes. To stay relevant and ward off this competition, banks must embrace new technology. Fintech companies often operate with lower costs due to the absence of legacy technology, making it essential for more mature banks to invest strategically to achieve similar results. By leveraging technology, banks can enhance their agility, customer-centricity, and innovation capabilities. It allows them to deliver new products and services quickly, explore partnerships, and create unique value propositions that differentiate them from fintech start-ups. 

3. Regulatory Compliance and Security 

Regulatory compliance has become increasingly complex for banks, necessitating robust security measures to protect customer data. Investing in technology can help banks automate compliance processes, streamline reporting, and strengthen security frameworks. Advanced technologies like blockchain, biometrics, and encryption provide opportunities to enhance data security, while machine learning and natural language processing can automate compliance tasks, reducing the burden on bank personnel. By leveraging technology to meet regulatory requirements, banks can instill trust in their customers and regulators alike. With the introduction of new Consumer Duty rules for new and existing products or services open to sales or renewals, firms must remain on track to identify gaps and implement the Duty effectively with suitable technology. This is likely to require the redesign of products and services to ensure the right data, MI and other intelligence is being used to monitor their fair value.

4. Operational Efficiency and Cost Optimization 

Traditional banks often grapple with legacy systems, manual processes, and high operational costs. These factors can hinder their ability to adapt quickly to changing market dynamics. Embracing technology is vital for streamlining operations, reducing costs, and improving overall efficiency. By digitizing manual processes, implementing workflow automation, and leveraging data analytics, banks can eliminate redundancies, optimize resource allocation, and enhance operational efficiency. This, in turn, allows banks to reallocate resources strategically, redirecting them towards areas that drive innovation, customer experience, and growth. 

The Urgent Need for Technological Investment 

As we look ahead to the new fiscal year, the urgency to embrace tech transformation becomes apparent. In this section, we will explore why banks must act promptly to initiate transformative projects, secure budget allocations, and lay the foundation for a successful technology investment journey. 

1: Enhancing Customer Experience 

Technology plays a pivotal role in enhancing the customer experience. By investing in advanced analytics, banks can gain deep insights into customer behavior and preferences, enabling them to tailor their products and services accordingly. Furthermore, AI-driven chatbots and intuitive mobile applications allow customers to access banking services seamlessly, regardless of the channel they choose. Personalization, convenience, and responsiveness are key drivers of customer satisfaction, and technology provides the tools to deliver on these expectations. 

2: Unlocking Data Insights 

Data is an invaluable asset for banks, and technology unlocks its full potential. By harnessing data analytics and AI capabilities, banks can derive actionable insights that inform decision-making, risk mitigation, and product development. These insights enable banks to understand customer needs better, identify market trends, and develop strategies to meet changing demands. Moreover, data-driven approaches empower banks to optimize risk management processes, identify fraud patterns, and enhance credit underwriting, ultimately leading to improved business outcomes. 

3: Accelerating Innovation 

Technology is a catalyst for innovation in the banking industry. By embracing emerging technologies such as Open Banking APIs, cloud computing, and blockchain, banks can drive transformation and explore new revenue streams. Open Banking APIs enable collaboration with third-party providers, facilitating the development of innovative products and services. Cloud computing offers scalability, agility, and cost-efficiency, enabling banks to experiment with new solutions without significant infrastructure investments. Blockchain technology, with its inherent transparency and security, has the potential to revolutionize areas such as identity verification and cross-border transactions. By embracing innovation, banks can stay ahead of the curve and actively shape the future of the financial services industry. 

The Imperative for Action: A Five-Step Plan 

Recognizing the urgency and importance of technology investment, banks need a strategic approach to guide their transformation journey. Here is a five-step action plan that outlines the key steps banks should take to embrace technology effectively. 

Step 1: Assess Current Technology Landscape

Banks should begin by conducting a comprehensive evaluation of their existing technology landscape. This assessment involves identifying strengths, weaknesses, and gaps that hinder their ability to deliver value to clients. By understanding the current state of technology infrastructure, banks can prioritize areas for improvement and make informed decisions regarding future investments. 

Step 2: Formulate a Technology Roadmap

Based on the assessment, banks should develop a robust technology roadmap that aligns with their business goals, customer expectations, and regulatory requirements. This roadmap serves as a strategic guide, outlining the sequence of technology initiatives and the timeline for their implementation. It should prioritize investments in areas such as digital channels, automation, data analytics, and cybersecurity, ensuring a holistic approach to tech transformation. 

Step 3: Budget for Technology Investments

To execute the technology roadmap successfully, banks must allocate adequate resources. This requires prioritizing budget allocation for technology investments in the upcoming fiscal year. Collaboration with IT leaders and stakeholders is crucial to ensure that the necessary funds are allocated to initiate transformative projects and support ongoing technology initiatives. Clear communication of the benefits and return on investment of technology investments is essential to secure budget approvals. 

Step 4: Mitigating Implementation Delays

Implementing technology projects often involves multiple stages and complex processes. To mitigate potential implementation delays, banks should initiate the process well in advance. This includes activities such as vendor selection, solution customization, integration, and testing. By proactively managing the project timeline and collaborating closely with technology partners, banks can ensure a smooth and efficient implementation process. 

Step 5: Foster Collaboration and Partnerships

Collaboration and partnerships play a crucial role in tech transformation. Banks should actively seek opportunities to collaborate with fintech start-ups, technology vendors, and industry experts. These partnerships provide access to specialized skills, accelerate innovation, and facilitate a culture of continuous learning. Collaborating with external stakeholders helps banks stay at the forefront of technological advancements and gain a competitive edge in the evolving landscape. 

Conclusion

The challenges faced by banks in the UK are significant, but the opportunities presented by technological advancements are equally immense. Embracing technology is no longer a luxury; it is a necessity for banks to thrive in the digital age. By recognizing the urgency to invest in technology, conducting a thorough assessment, formulating a technology roadmap, allocating budgets strategically, mitigating implementation delays, and fostering collaboration, banks can position themselves for success.  

The new fiscal year provides a fresh start and an opportunity to embark on a transformative technology journey that will drive innovation, enhance customer experiences, and future-proof operations. Banks must seize this opportunity and embrace tech transformation wholeheartedly. 

Learn more about putting change into action in our upcoming webinar with The Financial Brand. Register here.

Via: https://fintechos.com/

Lorem ipsum, or lipsum as it is sometimes known, is dummy text used in laying out print, graphic or web designs. The passage is attributed to an unknown typesetter in the 15th century who is thought to have scrambled parts of Cicero’s De Finibus Bonorum et Malorum for use in a type specimen book. It usually begins with:

“Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.”

Lorem ipsum

The purpose of lorem ipsum is to create a natural looking block of text (sentence, paragraph, page, etc.) that doesn’t distract from the layout. A practice not without controversy, laying out pages with meaningless filler text can be very useful when the focus is meant to be on design, not content.

The passage experienced a surge in popularity during the 1960s when Letraset used it on their dry-transfer sheets, and again during the 90s as desktop publishers bundled the text with their software. Today it’s seen all around the web; on templates, websites, and stock designs. Use our generator to get your own, or read on for the authoritative history of lorem ipsum.