6 Digital Banking Ideas You Can Borrow From Fintech Industry

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Each year, we see all kinds of limitless innovations that come from the tech sector. Over these past few years, fintech remains the talk of the town. This in-demand industry has now become mainstream, and the possibilities are endless.

In 2018, global investment in fintech companies reached a whopping $112 billion, more than doubling the result of the previous year ($51 billion). Today, almost half of all firms in financial services have embedded fintech fully into their strategic operatic model, with many fintech-based products and services.

What makes this fintech industry rise above the clutter is that it can provide a quick, convenient, and personalized service that customers have been longing for. Every financial issue can find its solutions at your fingertips.

So, it should come as no surprise if this technology is now taking the finance world by storm by developing innovative new ways for us to the bank. 

Fintech companies continuously leverage cutting-edge technologies to deliver first-class solutions to cater to their customers’ ever-changing needs.

If you are looking to venture into digital financial solutions, below are the top five digital banking ideas from fintech companies that you can implement for your financial services or credit union.

5 Digital Bank Ideas From Fintech Companies

6 Digital Banking Ideas You Can Borrow From Fintech Industry

1# Loan Lending at Fingertips

The ever-growing digital landscape disrupts entire industries and forms new ones, from cultural changes to consumption patterns.

To keep pace with a broader scale of the digital marketing landscape and invest in an expansion of opportunity, a lot of small businesses and startups seek loans.

However, the typical brick-and-mortar banks can take forever to grant loans. Not to mention the rejection of the application after the long process of getting loans. This is why online loan lending ideas from fintech companies come in handy. 

It effectively speeds up the time for the loan process since small businesses and startups can access the status of their loan application at just their fingertips.

2# Accessible Stock Market Advisor for Newbies 

Most millennials or the younger generation struggle with basic money management and long-term financial planning.

They are tempted to fulfill their unique, different lifestyle than any other generations which gives them a tough time to prioritize saving for their future or even retirement that is decades away. Let alone dabbling in investments.

Tapping into the stock market might be daunting and too overwhelming for millennials. In this case, one of the most innovative ideas that most fintech companies have implemented is the stock market advisor. 

This kind of pocketable mobile apps suggests the top stock market the millennials can effectively invest in. By all means, it makes it easier for anyone, even for newbies in the stock market world to choose the best stocks for their investment.

3# Digital Finance Management

Money is such a hard topic to discuss, and most financial issues are complicated to tackle most of the time. Especially in this quick-moving digital transformation environment, where people’s lifestyles are ever-changing– so it’s only getting harder and harder for them to manage their money and savings.

In such cases, digital finance management is a solution that most people can rely on. Adopting this smart innovation allows your customers to set a monthly budget, calculation of the bills, splitting the expenses, and even the whole reports of all of your spending. 

It makes it easier for consumers to keep track of finances and cut down on the subscription that doesn’t serve their interest to manage their expenses effortlessly.

4# Peer-to-Peer Payment (P2P)

There’s no shortage of quick and convenient payment methods these days, but none are as buzzworthy as peer-to-peer (P2P) payment.

In 2022, it’s predicted that more than half (52.5%) of mobile devices users will have made at least one P2P transaction every month.

This method of payment has now become a staple app on most mobile users. The main advantage of P2P payments is convenience, speed, accessibility, and ease-of-use.

With this app, users can easily split the money among friends to pay rent and various bills without having to log in to their bank accounts. 

5# One App for All Banks

Most people prefer to have at least three bank accounts at a minimum: a checking account, a savings account, and a retirement account.

In such a situation, downloading all apps and managing each of them separately feels like a lot of work. That’s why a single app that can provide access to multiple bank accounts are favorable.

A single substitute for all mobile apps can help the users to get their financial act together. It makes it easier for them to track every dollar that flows into and out of their bank accounts. Also, transferring money from one bank account to another has never been easier.

6# Artificial Intelligence (AI) and Machine Learning

Another smart digital idea you can borrow from the fintech industry is the adoption of AI and machine learning.

This sophisticated technology complements the fintech industry incredibly well. This is mainly because many financial projects rely heavily on analyzing a massive amount of data, which is something algorithms are the best at doing.

Fintech is designed to optimize the transaction speed and scale, giving the customers the complete experience. With AI and machine learning, fintech can serve the customers with chatbots or virtual assistants that personalized 24/7 support.

Adopting AI and machine learning to your financial service can benefit you in so many ways– especially to improve the business processes and boost customer satisfaction.

Wrapping Up

There are a lot of smart digital ideas you can steal from the fintech industry to leverage your financial-related business.

From the fundamental lend loan to the sophisticated AI technology, you now have some new references to get the company to the next level.

One thing to be mindful of, though, it’d be best if you prioritize the customer experience since all of the ideas above are basically about serving the customers as conveniently as possible.

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Author Bio: Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order). Follow him on Twitter & LinkedIn.