Finance services are one of the most dynamic industries today. New technologies contribute to revolutionary changes in this industry. New entrants, a shift in customer behavior, and rapidly evolving solutions on the digital front created a brand new landscape for financial institutions to contend with. Over the past year, the pandemic and its massive impact have accelerated these changes.
Open banking is now a common practice, which allows third parties offering financial services access to usual consumer banking. Open banking is leading the evolution of this industry, as a disruptor as well as an opportunity for all players regardless of shape and size.
It is estimated that 61% of all financial executives are positive towards the open banking system now than they were back in 2019. As such, open banking investment opportunities are significantly rising.
However, considering the fast-moving behavior of the open banking system, there is a lot of confusion. 46% of financial executives are not confident that the organization understands the benefits of this innovative banking.
Multibanking – The New Open Banking Case
Customer experience is very important in every business, and especially in the banking sector. Given the uncertain economy, it is crucial than ever that banks and financial institutions offer customers exactly what they are looking for. Today, customer experience and service have become the deciding factor for consumer’s purchase decisions.
According to a Tink report, 44% of financial executives all across Europe measured improved customer experience as the driving force to implement open banking.
However, to understand customers in detail and provide them with a quality experience, several financial institutions have to restructure their organization. This could take time. A Deloitte study reveals that approximately half of all consumers believe that their banks understand their needs and requirements.
Multibanking solutions involving digital lending and personal finance management do a lot to help customers manage their banking needs and financial health. In doing so, they drive up the engagement for financial institutions. Of course, they can move further to several millions of banking customers worldwide using multibanking accounts.
Excellent Customer-facing Services
For customers, the concept of open banking enabled multibanking permits all finances, through several accounts from diverse banks and financial institutions, to aggregate in one place – the web or a mobile app.
Moreover, it offers customers the bonus of having a holistic view of financial health and banking situations. But, multibanking involves a lot more than just this. Here’s a concise list:
- Active Search: People with multiple banking accounts have a tough time looking up for a specific transaction. It becomes incredibly difficult and time-consuming too. Intelligent and dynamic search enables users to find what they are exactly looking for just by clicking the button, across their finances.
- Payments: Several multibanking apps provide customers an option to create multiple payment transactions using the app, thus making fund transfer centralized and much easier. This includes grouped or single payments, SEPA, payment files, direct debits, and international transfers.
- Balance Management: Multibanking features automatic transfers. So, if an account is overdrawn, it shall be credited by the other account. As a result, customers avoid additional overdraft fees without worrying about ways to manage their expenditure for separate accounts.
Ultimately, financial institutions want to become every customers’ go-to multibanking partner. It is possible through dedicated infrastructure and technological development.