What Fintechs Should Watch in Q2 2023
May 12, 2023 | 2 min read
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This week, we aired one of the most unique discussions in the industry with 6 founders, influencers, and leaders from finance and fintech — Riff on a Lift. The discussion brought dynamic speakers together on a ski lift for an unmoderated, unfiltered discussion about trends, challenges, and opportunities impacting the financial ecosystem.
For those who missed it, check out our Riff on a Lift replay or catch some highlights below:
The Evolution of Community Banking (4:15-5:10)
Community used to be defined by geography but we’re finding new ways to define it in fintech. Banking needs to remain the same in that we have to have deposits and be able to create loans. Niche services and neobanks were focused on attracting customers but it wasn’t a full suite of banking. The opportunity is to find ways to monetize banking services in a more traditional way for these new communities that are being defined and served by more personalized offerings.
“The definition of community is changing but the definition of banking isn’t” - Wade Arnold, Founder and CEO, Moov
The Language of Finance (36:30-40:55)
To better reach communities, we have to make the language and imagery we use for financial products and services approachable and easily understandable. By using the language of the community rather than the world of tech and finance, you can make it more accessible to everyone, particularly various underserved communities.
Open Banking: It’s All About the Data (22:50-25:10)
Before digital and mobile banking took hold, companies learned about their customers from the interactions in the branch. Today, the promise of Open Banking — and more broadly, Open Finance — is being able to learn about customers and gain insights based on their financial data. The financial service providers who will win at Open Banking are those who can harness their data at scale and meet customers with the right blend of advice and products.
Leveling the Playing Field with Data (47:20-50:28)
Data is fundamentally what levels the playing field. Consumers want this because more competition means more choice. Open Banking in the U.S. is driven by the market. While that has meant it is taking longer to come to fruition, it is beneficial because it creates a groundswell in the market that drives Open Banking forward. Today, it’s becoming a competitive disadvantage for those who don’t want to enable data sharing. Consumers don’t want to use products or services that don’t allow them to share data.
“Banks and financial institutions that don’t subscribe to Open Banking will become increasingly marginalized. They just won’t be competitive.” - Julie Rasmussen, Founder and CEO, She Banks
Will Pay by Bank Take Hold? (7:45-11:20)
Driving more consumers to use Pay by Bank options for purchases requires changing the consumer experience. The experience and the benefits have to be compelling enough to change behavior. At the same time, many are unsure where the risk will lie for Pay by Bank. Merchants want to offer Pay by Bank but don’t want to take on the additional risk. Who assumes the risk and takes on the liability? Will Pay by Bank have a cost somewhere in between free and interchange fees to help offset the risk?
Are All Banking Apps Actually about Banking? (45:15-47:08)
Money sits at the root of a lot of non-financial-related problems. And, many apps are solving these non-financial challenges through banking. For instance, there are several apps designed for couples to manage their finances. At face value, there is nothing technically innovative. It’s a nice user interface on top of joint checking. The revolutionary part is the content and user experience they layer on top. It’s not a banking app - it’s a relationship app that uses banking to solve the challenge of not fighting with your significant other about money.
Be sure to watch the full replay for more insights. Thank you to all of our speakers for joining us for this first edition of Riff on a Lift:
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