Embedded fintech, a cutting-edge financial technology, offers banks and credit unions a streamlined way to augment their digital services without enduring lengthy periods of in-house solution development. By acquiring customizable products and integrating them with their branding, these institutions can swiftly enhance their apps and websites.
In essence, embedded fintech tools have the power to transform financial services organizations into comprehensive hubs for personal finance, compelling new users to join while retaining existing clientele.
HOW EMBEDDED FINTECH SOLUTIONS DRIVE USER ENGAGEMENT
Today's technology empowers consumers with unprecedented control over their finances. Generation Z, for instance, predominantly avoids physical bank visits and prefers online banking. By incorporating embedded fintech software into digital experiences, financial institutions can formulate comprehensive digital banking solutions that resonate with consumers across all generational divides.
Furthermore, offering these solutions as premium services can forge new revenue streams, as interested consumers willingly pay extra to access these offerings, enabling banks and credit unions to bolster their business resources.
EXAMPLES OF EMBEDDED FINTECH SOLUTIONS
Integrating financial products into digital experiences not only adds value to customers but also entices them to maintain their association with the financial institution. Various fintech solutions, including the following, can be seamlessly incorporated:
Subscription Management
People tend to spend more money than they think on subscription services they no longer use. Without a centralized system for tracking their subscriptions, it’s difficult to remember which accounts are still active.
Through a fintech partnership, financial institutions can empower consumers to effortlessly manage their subscriptions, potentially saving them money and time. An embeddable subscription manager lets users view and manage their subscriptions directly from your institution’s app or website. Consumers can also request a negotiation for a better subscription price on their behalf, saving them valuable time and energy — and, potentially, a lot of money.
Debt Management Solutions
When customers don’t have easy access to information regarding their debts, they’re likely to go somewhere else that offers a more convenient solution.
An embeddable debt management solution can give users access to their credit data in real time so they can make the most educated financial decisions for their current situation. A solution that complies with Service Organization Control Type 2 (SOC2) and the Fair Credit Reporting Act (FCRA) is important for avoiding costly penalties from government and industry authorities.
Ultimately, providing customers with real-time access to their credit data facilitates better financial decision-making, nurturing customer loyalty and trust.
Identity Protection
With 15% of Americans having experienced a financial scam in their household over the past year, identity theft is a valid concern. Consumers need to know they can trust your financial institution to protect their personal information from bad actors.
An embedded identity protection solution monitors customer data across various channels — including non-financial areas like the dark web — to identify potential risks and keep customers safe from falling victim to fraud.
Knowing this protection is available can help consumers feel more comfortable entering and viewing sensitive financial information from your digital touchpoints, building deeper loyalty and differentiating your institution from the competition.
STRATEGIC IMPLEMENTATION OF EMBEDDED FINTECH SOLUTIONS
Engaging your audience through embedded fintech solutions isn’t one and done. Earning the right to continuously engage your users necessitates a few key elements:
Personalized experiences
Using advanced analytics to identify trends and preferences in your customer data can help you create custom experiences for each user, which can help you gain their trust and loyalty.
Continuous value
Ensuring that the solutions you implement can provide sustained benefit to your audience is imperative. Are you working with your solution providers to generate automated alerts as an example? Is the solution provider working hard to improve their product offering? Are they open to feedback based on how your audience is using the products?
Integrated partnership
Your embedded fintech solution provider should be working with you to ensure you’re hitting your engagement and revenue goals. Keep the conversation open. Share your metrics with your solution provider and work together to achieve the KPIs you and your team are looking for.
FUTURE TRENDS AND OBSERVATIONS
As technology has improved over the years, consumers have come to expect convenient, “invisible” banking experiences. These experiences are so streamlined that consumers rarely think about the technical financial services behind each transaction.
According to industry experts, financial institutions should view embedded fintech as a growth opportunity. Collaborating with fintechs can help financial institutions revolutionize their business models to adapt to this new age of embedded finance, which is enabling businesses outside the financial sector to offer online financial services.
Being more open to technologies like artificial intelligence and machine learning can unlock additional opportunities for growth, such as:
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Advanced fraud detection and mitigation
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Use of alternative sources of data
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Predictive analytics to identify disengaged customers
FOSTER LOYALTY WITH EMBEDDED SOLUTIONS FROM ARRAY
Array provides high-impact private-label embedded solutions aimed at helping financial institutions enhance user experiences, bolster revenue streams, and gain a competitive edge. Discover more about the seamless integration of financial services and how Array's private-label solutions can transform your institution's customer experience. Contact us today to consult with our experts.
Contact us today to talk to an expert.
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Editorial Note: This content is the author’s opinion, expression, and/or recommendation(s)
BuildCredit LLC is a wholly owned subsidiary of Array US Inc, and is not a bank. BuildCredit Loans are originated by Cross River Bank, Member FDIC, a New Jersey Chartered Bank. Loans made by BuildCredit and Cross River Bank are subject to loan approval, terms, and conditions. BuildCredit Loans are deposited into a deposit account provided by Cross River Bank, Member FDIC. Deposits held at Cross River Bank, Member FDIC, insured up to $250,000.
