Banks Need Accurate Financial Insights To Determine if FinTech is a Good Fit
While no one was looking, PayPal and Square, among other financial technology (fintech) services caught the attention of tech-savvy consumers bringing disruption to the financial marketplace. Online banks offer consumers an efficient and convenient way to manage their money, as well as invest and spend it. As banks struggle to retain and grow their customer base, they may find themselves in a position to either partner with fintech or invest in their own digital services.
The financial landscape is about to change, whether banks are ready or not. As suggested in “Banks and fintech in 2025: An unlikely alliance,” posted by Eyal Lifshitz on TechCrunch.com, fintech startups are making it easier for consumers to move and manage money and many are interacting with money more on a digital basis and less physically. Banks are finding themselves stuck between the proverbial rock and a hard place. The challenge is how to overhaul legacy systems, that are still very much in use, to be more efficient and provide the personalized experience consumers are now getting from fintech. While many banks have worked on updating physical infrastructure, like ATMs and bank branches, and focused on increasing regulatory compliance, they’ve also consolidated to save money. As a result, the customer experience isn’t where it should be for banks and fintech is capitalizing on these weaknesses. Now, banks need to focus on implementing new technology and improving the customer experience or partnering with fintech companies to fill in those gaps.
Banks Facing Disruption Can Grow and Remain Profitable With ERP
JPMorgan Chase chose to partner with OnDeck, and other tech businesses like Messenger and Snapchat are seeking to expand commerce operations. There could be opportunity in these partnerships; however, banks need to know which partnerships could be profitable and fulfill changing customer needs. Making strategic business decisions like these requires accurate financial insights. Banks can replace legacy systems with modern enterprise resource planning (ERP) to gain visibility into business operations, including financial status. Then, determine whether to go it alone in this digital era or strategically align with a fintech partner.
Consumer relationships with banks and how they handle money is changing. Banks can grow and remain profitable in these changing times by replacing outdated systems for more efficient ERP. Contact AKA Enterprise Solutions for more information about using ERP to stay relevant and competitive in this changing marketplace.