How fintech is changing the way we interact with our finances

Fintech

Philipp Buschmann, Co-Founder, and CEO at AAZZUR informs us of the latest in Fintech personalization.

A lot has changed in the last decade, the focus previously has always been on transforming banking. Led by the challenger banks, customer experience became priority number one. This left the traditional banks frantically trying to catch up, update their infrastructure and meet the needs of a customer base who expected a certain experience and were now willing to move to find it.

Organizations learned quickly, however, that customer experience isn’t just about appearances, and an example of this is RBS’s failed project. Their tech stack was plagued with problems and their team spent the first three months of post-launch fixing bugs. The rush to go live meant the back-end was not finessed enough to give customers the experience that challengers like Monzo and Starling could, however, a few traditional banks have risen to the challenge.

The importance of a customer experience that genuinely solves problems is now a major priority for all in finance. Now fintech’s focussing on solving the next big problem: personalization, in doing so, businesses are reimagining what banking is.

In every area of our lives, we create a digital persona based on the choices we make, the data we enter, and the virtual footprints we leave, look at Netflix and Google accounts for example. Consumers receive highly personalized experiences on these platforms.

Many do not realize; they are also creating one whenever they use a credit and debit card. Yet despite streams of spending data, that experience is broadly the same for all customers with the same account.

AAZZUR has concentrated on how to use this data to offer customers ecosystems of financial services they genuinely want. Working with companies to create hyper-personalized customer experiences, consisting of financial add-ons that are offered to customers right at the point of need. Everything from specific insurance types to wealth management, travel money to carbon offsetting. All triggered by certain transactions and spending patterns.

This sort of hyper-personalization is getting a lot of coverage presently and a recent Deloitte report suggests banks that “deliver true end-to-end hyper-personalized products and services will create a significant advantage over their competitors.” Due to this, ecosystems are exploding across the sector, and to create them, companies have been made to collaborate and create program integration. This means former competitors are now becoming colleagues.

Via APIs, providers of all sorts of financial services can integrate their systems. Single service providers are falling behind as customers begin to expect a multitude of services from one provider.  For challenger banks, where only 5% worldwide have broken even, this is great news as it’s genuinely profitable.

Starling, the largest consistently profitable challenger bank, is a prime example of how successful this model can be. It simultaneously offers its payment rails to companies like Raisin and MasterCard while providing its customer’s personalized services from companies like Wealthify and PensionBee.

It isn’t just banks that can do this, in fact, interacting with our finances solely through our banks will start to feel quite archaic. That’s because now almost every online retailer with a digital presence can offer these services too. This, known as embedded finance, and is something potential clients need explaining about often. It simply means the embedding of financial products into non-financial businesses. Take Klarna for example.

Read More:

The possibilities go far beyond just short-term, point-of-sale loans. It’s now about offering customers an entire ecosystem of financial services exactly when they need them. It’s no surprise embedded finance could be worth 6.3 tn€ over the next decade.

This is the starkest example of how tech has reimagined banking. Banking is no longer just for banks. The traditional rules simply don’t apply anymore.

Click here to discover more of our podcasts

For more news from Top Business Tech, don’t forget to subscribe to our daily bulletin!

Follow us on LinkedIn and Twitter

An image of fintech, FinTech, How fintech is changing the way we interact with our finances

Philipp Buschmann

Philipp Buschmann is co-Founder and CEO at AAZZUR, a one-stop shop for smart embedded finance experience. Recognized as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better informed financial choices.

Philipp is a serial entrepreneur with extensive experience working in Challenger Banking, Financial Services, IT, and Energy across the world. He took one of his business’s public - Ignis Petroleum was publicly listed in the US and Germany.

Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioral economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.

The critical role of data integrity in generative AI

Anjan Kundavaram • 23rd November 2023

The quest to harness the full potential of generative AI relies on finding trustworthy data to achieve outstanding results for diverse use cases. With the continued growth and transformative impact of generative AI, business leaders need to ensure that the data being fed into it has integrity.

Navigating a CTO-as-a-Service arrangement

Cyril Samovskiy • 21st November 2023

Attracting a top-tier Chief Technology Officer (CTO) can be challenging at the best of times, but for tech startups – who often have limited resources, a yet-to-be-proven product-market fit, and financial instability – it can be even more so. Add tech’s ongoing talent shortage to the mix, and it’s easy to see why CTO-aaS is...

The Importance of SBOM and CVE in Medical

Diego Buffa • 18th November 2023

This article explores the critical landscape of medical device cybersecurity, focusing on the IMDRF’s “Principles and Practices for Medical Device Cybersecurity.” It advocates for a holistic approach throughout the product life cycle, with particular emphasis on the vital role of the Software Bill of Materials (SBOM). The article addresses the FDA’s stringent postmarket vulnerability reporting...

AI powered fused spurs unveiled by measurable.energy

Diana Kamkina • 15th November 2023

measurable.energy, experts in eliminating wasted energy, are proud to announce the launch of their latest innovation – fused spurs. This highly anticipated addition to their product line is set to transform the landscape of energy management in construction and commercial buildings.

Technology for a Sustainable Tomorrow

Mark Robison • 09th November 2023

We currently face the critical challenge of reducing carbon emissions in an effort to reach net zero targets. This is the challenge of our lifetime and for many more generations to come. Fortunately, this challenge has ushered in a new era of innovation, where technology plays a leading role in creating a sustainable future.

Preparing UK Businesses for the Coming PSTN Switch Off

Chris Wade • 01st November 2023

The PSTN Switch Off will require a robust framework of action as all business sectors will be impacted. In order to stay ahead of this significant change, businesses must start considering new, digital alternatives such as VoIP based communication technology.

Dark Fibre’s Role in Supercharging Edge Data Centers

Sean Lowry • 18th October 2023

In response to Proximity Data Centre’s e-book, Glide’s CTO, Sean Lowry explores the impact of low latency on gaming, the Metaverse, and AI. He explains how dark fibre and Glide’s “Fibre Cities” are primed to support the evolving needs of edge data centres and seamless connectivity.

Smart Labels and the intersection of technology and logistics

Sam Colley • 13th October 2023

The delicate fabric of the ever-evolving technological landscape is being rewoven with the introduction of game-changing elements like smart labels, which are bringing the logistics industry to the forefront of innovation. These technological wonders are not only transforming the landscape of logistics, but they are also unlocking a multitude of options where precision, discretion, and...