Blog - Jacob Parker-Bowles | Fintech

Major Case Studies Within Fintech

On November 2, 2022

In the business world, case studies have only become more important in understanding how an industry works and how to appeal to one’s audience. This is also true within the fintech industry, as it continues to gain momentum within the business world. Below are some of the biggest case studies within fintech and online banking.

Light Bank App
For instance, in order to appeal to the modern and traditional needs of its users, Shine has built a professional bank account that caters to the needs of freelancers through the Light Bank App.

The story of Light Bank has been one of the most popular customer experience case studies on Medium, with over 50,000 views on the platform alone. It has been recognized by various international design awards, such as the London Design Awards, the A’Design Award, and the iF Design Award. The Light Bank app is also nominated for the Red Dot Award 2019.

ITTI Digital Back-Office
When ITTI Digital started working with UXDA, they wanted to create a revolutionary core-banking solution that would allow banks to solve their employees’ pain points and improve their efficiency. This solution would be able to take into account their daily tasks and provide them with a better and more enjoyable experience.

Through the project, ITTI Digital was able to make their users’ main priority, which significantly changed their perception of the company’s products. It felt like they were finally able to see what was right in front of them.

MasterCard
In order to provide their users with a better and more secure experience, Mastercard wanted to redesign its card management section. This would allow them to easily manage their cards and solve their problems.

Through the project, ITTI Digital was able to gain a deeper understanding of its users’ pain points and improve the experience of its products. They were also able to provide them with the necessary knowledge to solve their problems in an effective manner.

Fintarget Trading
The hypothesis presented by the team at the BCS was that if a company can prove that investing is easy, it will attract more potential customers. To test this hypothesis, the team created an MVP.

The team was able to find a balance between the deadlines and the complexity of the project, which resulted in a block-by-block UX design for the MVP. As a result, Fintarget was able to launch its investment platform in just 1.5 months.

Fintech Trends Impacting Travel in 2022

By Jacob Parker-Bowles

On October 12, 2022

In FinTech, Jacob Parker-Bowles

While the travel industry has started to recover from the COVID-19 outbreak, new payment trends are beginning to emerge. The increasing convergence of travel and fintech is one of the most interesting developments in the industry in recent years.

The rapid emergence and evolution of new payment methods and technologies make it easier for travel companies to provide their customers with more comprehensive services. These changes are expected to significantly impact how money is handled in the travel industry next year.

New B2B payment options are available through open banking

One of the biggest changes in financial services is the emergence of open banking. This new service allows people to share their banking data with various third-party firms. It also will enable organizations to perform multiple functions, such as initiating transactions, without the need for the account owner to do so.

The emergence of open banking will allow travel sellers to pay out to providers such as airlines using various payment methods. Previously, they could only settle with industry settlement schemes, virtual cards, and cards. With the addition of open banking, the fourth major B2B payment method will be direct bank-to-bank transfers.

Soon, travel sellers will be able to use their PISPs to pay for their transactions using established banking rails. This will make bank-to-bank transfers one of the most common B2B payment methods in the industry.

Fintech services are being offered by travel companies

The biggest change that’s happening in the financial services industry is the ability of travel companies to provide their customers with more comprehensive services. For many years, the use of co-branded airline cards has been a successful driver of loyalty. With the emergence of new embedded banking technologies, the industry can now expand its offerings.

Due to the emergence of new banking technologies, travel companies are now able to expand their offerings by providing their customers with more comprehensive services. For instance, if an airline offers its customers the opportunity to earn points by paying their salary into their current account, then they’ll be able to use its loyalty program to reward them.

Before the emergence of new banking technologies, it was very difficult for travel companies to consider using virtual products and services. However, with the availability of white-label products and services from embedded finance providers, travel companies can now offer their customers more comprehensive services.

Buy now, pay later

Buy now, pay later (BNPL) is a popular payment method that allows retailers to extend a credit line to their customers. Through a quick risk assessment, a merchant can then decide to give their customers a line of credit, which allows them to pay in several installments. It’s a very smooth experience for both the consumers and the bank.

BNPL is the latest version of credit that’s designed for the digital age. It’s ideal for the travel industry as it enables flexible payment methods, which is very important for the many people who travel during the holiday season.

One of the biggest advantages of BNPL is its ability to allow travel merchants to offer their customers the opportunity to make a higher-value purchase. With flexible credit, they can also expand their options by adding additional services.

The Impact Of Inflation On Fintech

By Jacob Parker-Bowles

On August 22, 2022

In FinTech, Jacob Parker-Bowles

Due to the rise of inflation rates, many countries around the world have experienced significant increases in their consumer prices. According to a study conducted by the Pew Research Center, the highest inflation rate in Israel was 25 times higher than in 2021. The US was ranked 13th highest among the 44 countries surveyed. In the first quarter of 2022, the country’s consumer prices were around 8.0%. These numbers are alarming and show how companies and consumers are affected by these price hikes.

According to AskMoney, inflation is a phenomenon that occurs when the purchasing power of money decreases over time. This is because the prices of goods and services increase. It can affect the operations of financial technology companies, such as those that provide loans and buy equipment. In this article, we’ll talk about how inflation can affect these activities.

Increased Costs
Besides being able to store and move money, financial technology companies have also been instrumental in developing various infrastructures and technologies that allow them to perform their functions. In response to the Russia/Ukraine war, some financial services companies, such as PayPal and Visa, have decided to stop doing business in the country.

Due to the technological shortages that have occurred, financial technology companies have to consider these issues in their budgets. They can then develop new systems that will allow them to continue serving their customers.

Increased Cost Concerns
Despite the rising costs, financial technology companies still remain an essential part of the financial services industry. A study conducted by the Federal Reserve Bank Cleveland revealed that although the number of requests for loans from fintech companies is smaller compared to traditional banks, they offer a variety of benefits to their customers.

One of the main advantages of financial technology companies is their ability to provide loans to more people. They are also more likely to create employment opportunities for their employees. Through their services, fintech firms can expand their reach and establish themselves as a viable alternative to traditional banks.

Should You Update your Approach to Fintech?

By Jacob Parker-Bowles

On July 25, 2022

In FinTech, Jacob Parker-Bowles

If you work in the banking industry, you may want to take a page from the fintech book. When a commercial bank introduces a new financial product, it’s the result of six months or more of planning. Fintech operates a little differently, with new products and services launched for public consumption almost as soon as the idea is approved. The speed at which new fintech products and services are introduced helps those companies to stay ahead of competitors, such as traditional banks.

Looking Toward the 4th Industrial Revolution
While a new industrial revolution was already well on its way, the Covid-19 pandemic sped up the evolution of our society. A need for more remote services introduced advances in digitization. This created a need for new infrastructures in every industry, including the banking and financial fields. While banks still have to work with regulatory agencies, those agencies will be forced to loosen their restrictions to help banks compete with fintech companies. Fewer regulations will help traditional banks remain competitive as fintech changes how consumers manage their money.

Banks will also have to change. Rather than waiting to offer new services after competing financial institutions have already offered them, traditional banks will have to be at the forefront of innovation. By taking the risks of offering new technology-based services first, these institutions can gain a much-needed competitive edge. They will also be able to provide better service to their customers.

Fintech Isn’t the Enemy
While banks do compete with fintech companies, a forward-looking bank will instead reach out to those companies to form partnerships. By incorporating fintech products and services into your bank, you can offer more state-of-the-art services to your customers. Many tech-savvy consumers will look for fintech that interests them. By offering those innovations, you will encourage those consumers to conduct their finances with your institution.

It Will Take Work
Adding fintech services for your customers will still come at a cost, but you should look at this as an investment in the future of your bank. You’ll have to enhance your bank’s infrastructure to accommodate new technology.

You may also need to reorganize how you utilize personnel. Rather than assigning one or two people to perform specific tasks, your fintech-friendly bank will operate more efficiently through the use of teams. A team-based structure will promote a greater emphasis on customer satisfaction, while also helping team members to strengthen their expertise and develop new skills.

How Competitive is Fintech?

By Jacob Parker-Bowles

On July 25, 2022

In FinTech, Jacob Parker-Bowles

The past decade might be called “the Rise of Fintech.” The coming decade may just very well be called “The Age of Fintech.”

Fintech, short for financial technology, has exploded across the globe and asserted itself as one of the most powerful sectors in commerce and business development. Already, a remarkable 64% of world consumers are now using at least one form of fintech product.

That’s exciting for investors and developers. However, tens of thousands of entrepreneurs are jumping in as they hope to create the next great fintech app and get their slice of the pie.

That means fintech is getting crowded and more competitive month by month. Keep in mind, however, that the issue of “competition” is a multilayered and multidimensional quality.

That is, fintech competition is not only heating up between new start-up entities. It is also challenging old institutions, such as legacy banks and financial institutions.

To the latter, fintech is a threat to “business-as-usual.” That’s because fintech naturally competes with traditional banks in numerous ways. Take crowdfunding, for example. This new tech-enabled form of raising cash for business start-ups cuts banks right out of the picture.

Today, even a person with dicey credit can launch a campaign on Kickstarter and go directly to tens of thousands of small investors to get the cash they need. One also can bypass a bank for obtaining basic tools, like a checking account or a merchant account for business. These needs are easily handled by simple and inexpensive-to-use fintech apps.

Be aware that the degree of competition among new fintech firms varies greatly by geography and against the relative maturity of established financial institutions.

Speaking of “established financial institutions,” that is probably the way we can define PayPal today. But just a few years ago, PayPal was one of the early services that could be truly defined as fintech and stood nearly alone. Today it faces fierce competition from numerous players both big and small.

Just a few examples of PayPal’s competition are Google Wallet, Payoneer, Wepay, 2Checkout, Authorize.net, Skrill, Intuit, Propay, Dwolla – and that’s just for starters.

So yes, fintech remains hot -– and a hot market means stiff competition.

Setbacks of Using Fintech

By Jacob Parker-Bowles

On June 23, 2022

In FinTech, Jacob Parker-Bowles

Fintech has become a big part of our lives, even if we don’t realize it. Fintech essentially refers to any financial technology and can fall into something as simple as the banking app you use on your smartphone or more complicated such as companies that focus on things such as mobile payments or insurance. Fintech has made our lives easier in a lot of ways, but like most things, it’s not without its problems. Here are some of the setbacks of using fintech.

Data Security

The rapid growth of financial technology in Europe led to a 78% increase in the number of people using it in 2020. However, this growth has been accompanied by unintended consequences. One of these is the rise of cybercrime, in which attacks occurs at least once every minute. Unfortunately, many of the companies that are using fintech are also being targeted by hackers. Due to the rise of digital money, the number of people who rely on financial technology to manage their money has increased significantly. This has increased the amount of data that banks and other financial institutions can collect. Unfortunately, this has also led to the potential for data breaches at major companies such as credit bureaus and foreign exchange brokers, such as Pepperstone, an Australian brokerage company that had its own customer data stolen in 2020.

Regulations

One of the biggest challenges the fintech industry typically contends with are the regulations that come with it. Government regulations and fees affect fintech banks in a big way, and they typically end up straining the resources of the bank. Regulations such as the Dodd-Frank Act and the Financial Account Standards Boards’ Current Expected Credit Loss play a big role in how a bank utilizes fintech, to the point where some may provide their customers with more limited options due to wanting to avoid compliance fees and the like.

Keeping Up With Evolving Tech

While operating through digital platforms can be extremely beneficial and sometimes even necessary for the survival of many financial institutions, making the actual jump to digital platforms can be costly and risky. Financial platforms that haven’t made the jump to digital need to make an important decision; do they take the risk in order to keep up and stay relevant, or do they stick with what they know and not have the same offerings as other platforms?

There are many drawbacks to using fintech beyond the three mentioned here, but many would argue that the pros outweigh the cons. As we continue to move through this digital world, financial institutions will have to do their research to see if investing more into fintech will ultimately help them succeed.

How is Inflation Impacting Fintech?

By alonden

On May 24, 2022

In FinTech, Jacob Parker-Bowles

More consumers are choosing online fintech over traditional banks and credit unions regarding financial management. The decline in the value of fintech stocks over the past year has been quite steep. This sector includes companies such as digital payments and insurance firms. According to Forbes, a little over 10% of consumers pay for the services of these providers. Most consumers pay for the services of fintechs through monthly subscriptions or membership fees. A third of those aged 21 to 55 subscribe to these services, while only half spend more than $10 a month. Despite the recent market turbulence, driven primarily by runaway inflation and rising interest rates, the decline in the value of financial technology stocks has been considered mild by market observers. However, analysts believe that the sector’s slump is a necessary step to improve the industry’s stability.

The term financial technology refers to various ways financial firms can improve the efficiency and accessibility of their operations by using software. These businesses typically use that technology to automate or adapt traditional financial services. Neobanks are online banks not based on physical branches. Instead, they offer a wide range of financial services through their online platforms. These nonbank neobanks do not have the same broad range of offerings as their traditional counterparts. Many of the founders of financial technology companies are not bankers; instead, they tend to focus on the user experience of their platforms. Most do not have a deep understanding of the financial services industry. One of the main factors that contribute to the profitability of these firms is the transaction fees that they receive when customers use their services. Financial technology’s rapid emergence and evolution has created new opportunities for banks and other financial firms. These businesses are constantly looking for new ways to improve their operations and meet the needs of their customers. Due to this innovation, traditional banks are forced to rethink their approach to operating.

According to a study conducted by Simon-Kucher, the world’s neobanks have a combined population of over 400. Out of the top 25 firms, only two have managed to achieve profitability. These firms typically make less than $30 a customer. The study also noted that the number of neobanks globally has increased over the years. Out of the 400 or so neobanks currently operating, it is predicted that around 300 will not be here for long. The value of financial technology stocks has been declining steadily over the past couple of years. As of 2022, fintech stocks are down around 25% from their peak, underperforming the Nasdaq-100, down more than 26% year-to-date. Financial technology’s rapid emergence and evolution has created new opportunities for banks and other financial firms. However, the flood of new financial technology companies backed by SPACs has all but evaporated. Leaders such as PayPal Holdings, Block Inc., and Robinhood Markets have lost more than 60% of their value since October 2021. One of the main factors that prevent financial technology firms from turning a profit is the vast amount of money they give to their customers. The key to profitability for these firms is to move away from being free and toward being fee-based. The potential of financial technology companies in traditional financial institutions is immense, considering the various sizes of financial institutions in the industry. Aside from being fee-based, financial technology firms can also benefit from the advantages of being backed by banks. With the ability to offer high-interest deposits, traditional banks can compete on a scale most neobanks cannot.

The Future Technologies of FinTech

By Jacob Parker-Bowles

On May 4, 2022

In FinTech, Jacob Parker-Bowles

Financial technology is growing at historic rates as society weans itself more to digital tech. The emerging technologies we have are changing the connections many have gotten used to. Internet signals and machine learning enable society to innovate at a tremendous rate. These types of innovations are also influencing the financial markets. Generating more investors and giving them quicker transactions and live data are ways financial technology (FinTech) evolves.

ESG

Businesses around the globe are being judged based on their relevance to the modern world. This ESG model covers environmental, social, and governance points to scale. This model is used to rate a business’s investment potential. The direction of FinTech is also partly based on this trajectory. How social or environmentally friendly businesses are is important today. These factors will stand regardless of the individual innovation a business makes in finance.

Cloud Efficiency

Banks and financial institutions still have advances to make regarding their use of cloud technologies. The digital infrastructure of the financial world can only remain relevant if it’s integrable. In this way, “integration” is your adaptability to the remote and wireless society. As far as the actual cloud, these services make digital networks faster, safer, and with more utility. Storing data, accessing it, and then assigning it roles are pivotal tasks in finance.

Blockchain

Blockchain not only presents us with the potential of cryptocurrencies. The challenges that financial institutions face on the web are solved with a layer of blockchain. The infallible record kept by blockchain improves how banks and financial professionals account for the money. The transactions of this algorithm can’t be infiltrated, reverted, or decoded. This level of safety has value. The blockchain code works on automation and even AI machine learning today.

Artificial Intelligence

Artificial intelligence is an emerging trend in technology, and it will also be used to improve the world of finance. Not only does this tech evolve as it receives more data, but it gives blockchain an extra layer of security. The speed AI calculates it to move faster than active hackers.

How To Promote Fintech Through Marketing

By Jacob Parker-Bowles

On March 30, 2022

In FinTech, Jacob Parker-Bowles

In recent years, the use of financial technology, which is also commonly known as fintech, continues to gain popularity. According to a recent study, nearly 90% of Americans now use some form of fintech to manage their finances, making it necessary for businesses to adopt it. Its efficiency and ease of use for customers have made it a common approach for countless businesses. While there are an array of benefits for customers to utilize fintech, it is still an important thing to promote through marketing efforts. The following are tips on how to get the most out of your marketing efforts with fintech.

Create A Plan Of Action
One of the most important steps to take when first beginning is to create a plan of action for your marketing efforts. Marketing plans are often underutilized but are an essential way to determine one’s goals and the approach to meet those goals. Things to consider when creating the marketing plan are:

What is your target audience?
What mediums will you use to reach your target audience?
What approaches will you use? This could include digital marketing, print marketing, or public relations
What are your main goals with your marketing objectives?

Focus On Educating Your Target Audience
A mistake that many businesses make with their marketing efforts is the focus on marketing only. For something like fintech, the goal should not be to market but to educate your target audience. In order to achieve this, your marketing plan should include a focus on increasing awareness and a general understanding of fintech. This can be done through the creation of monthly blog content, newsletters, and social media posts, to name a few. By focusing on educating your target audience, you are likely to become known as a trustworthy resource within fintech in the future.

Utilize Social Media
Over the last 15 years, social media has continued to take the internet by storm. Social media has become a go-to for news. It has also become a resource for customers to learn more about businesses. Use social media to reach your target audience on a regular basis, especially if the specific audience uses social media on a daily basis. In doing so, you can increase your overall reach while increasing awareness of fintech.

How To Forge A Career In Fintech

By Jacob Parker-Bowles

On March 1, 2022

In FinTech, Jacob Parker-Bowles

Fintech encompasses a broad range of interests that incorporate the use of technology in managing finances. This involves anything from eCommerce to the use of mobile apps for individual businesses. Even though you may have the skills needed in finance, you will also have to develop knowledge and expertise in the adaptation of technology before you can pursue a fintech career.

Technical Skills
The technical skills you will need to develop through education and training will depend on the type of fintech career you want to develop. For example, you’ll need to have graphic design skills and an understanding of HTML programming to develop a career in eCommerce and web design. If you want to develop mobile apps for businesses, you’ll need to know how to write those types of programs. You can always evolve your career in the future, but you should start with a basic understanding of the skills you will need.

Soft Skills
Many people in the fintech industries end up pursuing entrepreneurial projects. For that reason, you should have good communication skills, a natural ability to lead, and an ability to interpret analytics from multiple sources. You should also be good at problem-solving, and you should be able to perform efficiently within a team. These soft skills will help you to be productive in any environment, allowing you to work well for others or succeed with your own startup.

How to Start Your Fintech Career
As previously mentioned, you should focus on a particular niche within fintech to help you determine what hard skills you will need to develop. Even after you get basic education and earn your degree, you will have to keep up with new advances as they emerge. You may also want to add to your qualifications by earning another degree in a different fintech niche. Continuing your education throughout your career will add to your skillset and make you more valuable to potential employers.

Just like any other type of career, it’s also important to start networking as early as possible. Look for others who have an interest in fintech or those who already have careers in this field. By developing a wide and diverse network, you’ll learn more, hear about a new job or investment opportunities, and you’ll find new ways to expand your network even further.