In addition to e-commerce, the traditional banking sector has also come under increasing pressure due to mass digitalisation and modernization.
Essentially, in order for banks to stay competitive in today’s payment scene, banks need to rethink their distribution models and product offerings to meet today’s tech-savvy consumer expectations. FinTech startups have successfully managed to redefine what the customer expects from a bank. Setting the bar for UX and UI in comparison to banks.
Banks often use too much valuable time and resources to build or modify existing technology internally. Since introducing Open Banking, banks have had to change their approaches anyway and the first step in terms of new API solutions has been taken, then the next logical step could be to partner with a paytech partner. Such cooperation ensures that the bank will be able to implement new technologies faster and more cost-effectively. At the same time, paytechs help to develop new solutions faster and more cost-effectively, so banks should rather consider cooperating with payment service providers rather than seeing them as their competitors. The winners are probably the ones who have already done so today.
Pay and fintech companies grant banks access to new developments that meet the growing digital demands of customers with ease. In addition, such cooperation enables a faster time-to-market with new solutions, whilist keeping in-house development costs and investments lower. Thus, the main advantage for banks to partner with paytechs is the increase in revenue and improved costs.
Simply put, it’s a win-win situation. For banks, such partnerships would mean a more data-driven approach with lesser costs, substantial technical know-how, and increased efficiency. By significantly reducing structural costs, banks can focus more time for value-added tasks, ultimately freeing resources for core projects. For startups, partnering with financial institutions will provide access to funds supporting future growth. Making businesses more scalable and sustainable in the long run.
EveryPay essentially aims to empower and support financial institutions and their merchants by keeping our payment solution always up to date. Our cloud-based payment gateway platform supports a variety of payment options to keep up with changing consumer behaviours. Our digital payment solutions can be easily integrated and offered as a fully branded white-label solution, giving the banks access to the same features as leading PSPs (Payment Service Providers) more cost-efficiently. This allows banks to further focus on revenue growth and invest into core projects.
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All in all, combined efforts can create a stable financial system that works for everyone in today’s fast-changing digital scene. Offering an even stronger level of security as well as greater transparency with fewer cost implementations. If banks and other financial institutions act and embrace these ideas and technologies, traditional banking will emerge stronger than ever from the current disruptive phase.