Whitepapers > How Financial Institutions Can Overcome 3 Obstacles to Innovation
Digital innovation is happening fast — and there’s no slowing it down. Financial institutions are shifting priorities as third-party apps and services become more prevalent among consumers. Now, staying connected is no longer just an option; it’s critical to achieving success and staying relevant.
But moving fast isn’t as easy as it sounds. There’s a fine line that financial institutions have to balance when it comes to innovating quickly to give their customers the experiences they’ve come to expect and ensuring their data remains safe and secure. As data sharing and connected integration ecosystems become the new norm, here are three challenges many financial institutions are facing.
Creating relevant and personalized offers that resonate with your customers requires up-to-date data. But gaining access to that data can be time consuming and often comes at a cost. And if you’re only pulling data on a monthly or quarterly basis, your data may no longer be accurate. With how fast things are changing in today’s world, you need real-time information to make real-time decisions. A recent and poignant example is COVID-19. Everything was turned on its head in a matter of weeks when the pandemic hit, and the financial industry had to act fast to try and adapt to the hardships their customers now face. To help customers in this time of crisis, financial institutions need access to the most current customer information. Data from previous months quickly become irrelevant and out of touch with what’s happening in the real world.
What financial institutions need is a solution that makes data accessible in various ways. When all data is brought together, financial institutions can start to see users as much more than accounts and transactions. They can start to gain a complete picture of who their customers are.
The pandemic is only one example that shows how critical data is in everything we do. What’s more, tech companies will only continue to push the boundaries of truly data-driven customer experiences, leaving little to no choice for financial institutions to either catch up or be left behind.
The ability to connect to third-party technologies easily, seamlessly, and quickly is imperative when it comes to keeping up with the pace of innovation in the financial industry. As customers’ expectations continue to grow, so does the need to have the latest and greatest technology options. But building everything in house can come at a significant cost and just isn’t feasible with the rate of change taking place. There are so many different relationships that are pulled together from disparate systems that typically exist in multiple ecosystems, that financial institutions need a solution that can connect that information and make it available to multiple layers. To be successful, financial institutions need complete access to the latest technologies in order to go to market faster with innovative solutions that effectively compete with fintechs, challengers, and big banks.
Adapting quickly while maintaining a high level of security will be paramount for financial institutions as new entrants and technologies continue to reshape the financial industry. And nothing is more detrimental to success than being locked in a contract, preventing a quick and iterative approach to innovation. Financial institutions with legacy systems that don’t easily connect with current technologies, or that have third-party partnerships that require years for upgrades, won’t have time to adapt to how fast the financial industry is changing. What’s more, with increases in integrations and data sharing becoming the new norm, it’s more important than ever for financial institutions to thoroughly vet their third-party relationships. When it comes down to it, financial institutions need a fluid and real-time solution that enables them to implement new features and updates quickly, easily, and securely so they can create the hyper-relevant and timely experiences customers expect.
Connectivity to third-party apps and services is dominating the financial industry and Path is how financial institutions can come out on top. Path provides financial institutions with a simpler, faster, and more secure way to connect to different services, apps, cores, and systems.
Path is an API driven solution that powers modern banking and data access, making it easier for financial institutions to seamlessly integrate with the services and apps they need when they need them. Essentially, Path is a connector framework that enables you to overcome constraints and challenges you may be facing with your current solution — such as slow innovation, paying for upgrades, and feeling stuck in a long-term contract — freeing you to take control of your data and create a frictionless customer experience.
Brandon Dewitt, CTO and Co-founder at MX, expands on why Path was created and how it helps financial institutions scale and grow: “There are so many systems behind the scenes you need to plug into. And you start realizing all the difficulties with transitioning from one system to another. As we begin to interact with additional systems that are working in a more real-time format, we need to be able to have systems that can connect them together while still creating consistency in that experience. Where Path came from was this idea that as financial institutions continue to grow into the future, we want to create, quite frankly, a path for them to move from systems that may be doing the heavy lifting today to systems that they see as their opportunity for tomorrow. Systems that are more real-time and set up for a world of how users expect to experience their interaction with their financial institution.
Path provides freedom from vendor lock, keeping you connected to enhanced product functionality and allowing you to continuously innovate to meet customer needs. Path will:
Whether you’re just beginning to look into integrating with third-party solutions and services or are ready to start making changes today, Path can simplify the way you connect, helping you move quicker and innovate faster.
If you’re interested in seeing how Path can help you connect to the third-party apps and services you need to stay ahead and succeed in digital transformation, contact us or visit www.mx.com/path