Many financial institutions struggle to decide where they should focus their strategic modernization efforts. Should they prioritize back-office and core capabilities or more tactical front-end and point solutions? Trying to choose the best option often leads to significant resource use and major inefficiencies. Combined with the rapidly changing customer expectations driven by generational shifts in technology, this struggle means financial institutions need to quickly rethink their approaches to modernization and innovation if they hope to stay competitive.
That’s where fintech enablement comes in. Fintech enablement empowers financial institutions to access and leverage new technology and tools on their own to improve operating and decision-making processes, in turn offering streamlined products and services to their customers.
What is a Fintech Enablement Platform?
Designed to accelerate the launch, servicing, and expansion of financial solutions and new customer journeys, a fintech enablement platform is a technology infrastructure that acts as an operating system to implement fintech enablement’s many capabilities. They can often be thought of as one-stop-shops for all financial technology solutions, including digital wallets and payment gateways.
Fintech enablement platforms are also uniquely designed to integrate with existing systems in a cost-effective manner to achieve a seamless transition. They include prebuilt and modifiable components that can be quickly deployed in a more agile and responsive method than most traditional systems. Built to be highly scalable and customizable, fintech enablement platforms allow businesses to tailor solutions to their customers’ needs now and in the future.
5 Key Components of a Fintech Enablement Platform
There are several key components that can typically be found within fintech enablement platforms. If you are thinking of partnering with a fintech enablement platform provider, make sure they have these five components in place.
1. Product Definitions & Components in Critical Product Areas
Having well-defined product definitions and components in critical product areas such as lending, savings, mortgages, insurance, payments, and embedded finance ensures the platform is clear and consistent for everyone involved.
2. Data Models That Sit on Top of Existing Data Sources
For data sources such as legacy core and open baking, having data models that sit on top of existing data sources enables the platform to integrate with a wide range of data sources, including legacy systems, cloud services, and third-party APIs.
3. Capabilities to Create Customer Journeys
Effective fintech enablement platforms should have the ability to create customer journeys that make use of embedded automation and streamline both workflows and the customer experience, giving the platform a more personalized feel and gathering valuable insights about user behavior.
4. SaaS Ecosystem Connectors
SaaS ecosystem connectors that can be orchestrated into customer journeys and bring external innovation into the mix take advantage of the latest software innovations in a cost-effective manner.
5. Self-Use Tools
Self-use tools that allow nontechnical staff to create, service, and update solutions using low-code or no-code can reduce the turnround time and cut down on costs for simple changes or customizations.
Getting Started with Fintech Enablement
Whether you’re a large financial institution or new to the market, a fintech enablement platform may be the solution one-stop-shop you’ve been looking for. Learn more here.