Connecting financial institutions to our 4wrd platform is a seamless and scalable process. It varies depending on the core system and overall technology infrastructure of each financial institution, but we as a team, always adapt to its different characteristics and requirements. It is the same scenario when we start the matching process of FinTechs from our global ecosystem to the financial institutions. Once we start working with each one of them in the implementation process, the roadmap is defined by the kind of solutions that they are looking for. The main goal of participating in a marketplace is the same for all, but the specific needs are different.
So far, working with financial institutions operating in more than 50 countries has definitely brought a wide variety of needs they want to solve and opportunities they want to explore through FinTech. However, we found that there is definitely a trend in what financial institutions want to get nowadays from the FinTech industry. The level of prioritization for each use case and the way each institution approaches them is different, but the most common areas where they look for solutions are: Automation of internal processes, alternative channels to engage with customers, and mobile/agency banking models.
Several of the financial institutions we are working with, specially from Latin America, see FinTech solutions as the key component to approach automation of internal processes. The main focus is on the optimization and management of loan origination. Two components are key when looking for the right FinTech in this space: customization and visibility. Financial institutions want a product that can be easy to customize and adapt to the metrics that each financial institution uses. It is also important for them to have a comprehensive dashboard with a clear flow for every department involved with these products within the institution.
The second area in which we have seen a high demand of solutions is customer engagement. When we meet with them and analyze the channels in which the financial institutions interact with their customers, it is clear that social media is not being leveraged at its full potential. Although most of them promote their products actively in Facebook, Twitter and Instagram, these are not the principal communication channels for customer service, even though the vast majority of their customers are present there. This is why we have been working with AI chatbots, omni-channel communication platforms and others for different use cases. Our comprehensive customer engagement FinTech model has definitely provided the financial institutions from our ecosystem with a much more efficient way to serve customers for instantaneous customer service and campaign management.
Lastly, innovative mobile/agency banking models got a lot of attention from financial institutions. As many of them strive to reach unbanked populations and accelerate the account opening process, this type of solutions is a perfect match. We focused on FinTechs with a simple and secure KYC process that could also capture loan applications in the field easily. These have been a successful use case for all the institutions from the ecosystem focusing on microfinance.
It is interesting to see how some financial institutions’ goals are aligned with each other when participating in an ecosystem, but just as the FinTech industry as a whole, this is fast-paced and changes constantly. As we keep growing our network, we have been seeing a higher demand in robo-advisors, KYC solutions and different cases that use blockchain. Let’s see what new players bring to the table.