Right now the capital of France is hosting the most exclusive European event on digital finance — Paris FinTech Forum 2019. The conference is held on January 29-30, and Intellias is there to grasp industry trends and ideas from world-renowned FinTech innovators.
Our strategic practice leader in FinTech Services, Solomiya Zahray, is at PFF 2019 and shares the hottest insights from the first day at the conference. Let’s see what the first day of Paris FinTech 2019 brought to us.
World Wide new retail banking world
FinTech can be a force of good for the 2 billion people who are unbanked or underbanked, and for the millions of workers who are sending money back home. Lower transaction costs could mean a meal for a family.
The first day of PFF 2019 has started with CEOs of world’s leading digital neo-banks discussing future opportunities for growth.
Maximilian Tayenthal, the co-founder of N26 (DE), David Vélez, CEO of Nubank (BR), and Oliver Hughes, CEO of Tinkoff (RU), agreed that scaling is the key challenge for digital banks and see lending as the primary source of income for their neo-banks to become sustainable. That’s the ultimate conclusion based on a top priority for financial institutions around the world: focus on consumer needs and the digitalization of customer services.
Financial area is one of the readiest for disruption.
With a customer-centric approach, digital banks aim to enhance the services they offer to end clients. As lending is at the heart of the majority of touch points with customers, its digital transformation will offer compelling advantages to banks such as revenue growth and higher customer satisfaction rates.
With the merge of digital banking and lending services, traditional banks might feel insecure. Taking loans at conventional banks is highly regulated and may take up to several days. While online-banking has a win-win strategy: you may open an account and receive a deposit in minutes without a tremendous amount of paperwork with the help of online lending platforms.
By offering lending platforms, digital banks extend their offering and get new space to succeed. But does it mean that platformification is the key to success? It seems to be so.
Platform is the new Black
Platformification of financial services as an emerging trend is a topic mentioned throughout the entire PFF 2019. There was even a dedicated panel discussion with Gilles Gade, CEO of Cross River (US), Roland Folz, CEO of SolarisBank (DE), Steve Kirsch, CEO of Token (US), Nigel Verdon, CEO of Railsbank (UK), Anne Boden, CEO of Starling Bank (UK) on the importance of banking as a service.
Banking as a service is all about the facilitating of other businesses to create value.
It means that traditional banks, as well as digital ones, understand that platform-based services are the future of banking due to the growing segment of tech-savvy customers. The way people interact with banks is changing: people still visit brick-and-mortar banks a few times a year. However, they use banking applications hundreds of times a year.
In this case, platform FinTech institutions have an edge as they offer easier access to their services, providing flawless customer experience.
According to Anne Boden, in all of the large banks she worked at, it was challenging to implement new technologies and solutions to improve customer experience. It means that traditional banks have to change their mindset to meet the rising customer demand for data-driven and real-time platforms.
We have to make sure that the company is more digital and data driven itself: provide better services to our 13M customers and make bank processes more efficient.
What’s coming next?
The first day at PFF 2019 was full of the insights of how to improve banking services, solve challenges of scaling and meeting customer needs. You may find our notes from the second day of PFF 2019 to get the full picture of where FinTech is heading.
Intellias strives to be the first to discover emerging trends that will shape the industry and we’re glad to share them with you. So, stay tuned to get the freshest insights on the future of FinTech directly from Paris.
Contact our FinTech practice leader, Solomiya Zahray, to discover how FinTech solutions displayed at PFF 2019 could help you solve business challenges.