Regional banks have a big opportunity in open banking

Regional banks have a big opportunity in open banking

Sergio Barbosa, CEO, FutureBank

Co-founder and CIO of enterprise software development house, Global KineticSergio directly heads its open banking platform, FutureBank. A skilled software engineer, innovative product developer, and keen business strategist, he has participated in several notable fintech milestones, including building the southern hemisphere’s first digital-only bank all the way back in 2002.

Pandemic spurs digital transformation drive

Even as this pandemic pushed digitalization to the top of banks’ agendas, associated business stresses cut into their capacity to respond. Forced to prioritize measures to survive now over thriving the year after next, they re-allocated resources overnight. IT budgets were hit hard. Big digital transformation projects – including open banking initiatives – were cut or scaled back at HSBC, ING, RBS, and other boldface behemoths.

At smaller financial institutions, the situation was often critical. Regional banks and credit unions that were further along in their transformation journeys were in a significantly better situation than those that were not, but everyone was stretched by the new imperative to serve their customers and members remotely in straightened circumstances.

And yet. Over 18 months since the drama of that first lockdown, thousands of US financial institutions can proudly say that they got there faster than they thought they would. Many of their customers took a leap into the digital void with them, and a large percentage of those will continue using self-service channels after the masks come off for the last time.

 

No time to wait on open banking

 

We aren’t out of the woods yet, mind you, not by any measure. Margins are thin, fintechs continue targeting the most profitable lines of bank business, and unprecedented self-service banking rates, otherwise a reason to celebrate, are negatively impacting customer satisfaction rates across all ages.

There are strong indications that traditional banks and credit unions, including the very largest, are losing primary account status to digital-only banks at a faster rate than before. As reported by Ron Shevlin of Cornerstone Advisors, “Roughly one in four Gen Zers and Millennials now call a checking account from a digital bank their primary account. That’s about double the percentage it was at just nine months ago” (my emphasis).

Financial institutions of all sizes – but small- to mid-sized ones especially – face some level of threat from categories of companies no-one would have heard of 20 or even 10 years ago. The point is that banking is being reshaped by forces outside of the industry’s traditional spheres of influence and ignoring it won’t make it go away. In a July 2021 report with a focus on the United Kingdom, McKinsey says, “If open finance continues to accelerate it could reshape the global financial services ecosystem, change the very idea of banking, and increase pressure on incumbent banks.”

Bank consolidation declined somewhat during the pandemic but is predicted to lurch upwards in the coming years, driven in part by digitalization. Change is no longer negotiable for incumbents hoping to be around in twenty years, and it has to encompass pretty much everything about the business. McKinsey again: “It will be imperative to understand and respond to these changes, reimagine offerings, adjust business models, and forge successful partnerships with fintechs or tech companies, to ensure continued success and relevance.”

Regional banks and credit unions face a dilemma like few anyone in the industry remembers. With barely any time to catch their collective breath, they must set about the next stage of their digital transformation. Covid-19’s systemic side effects did nothing if not make the case for open banking stronger, more urgently central to American financial institutions’ future prospects than it was before.

 

Open banking is also a significant opportunity

 

Research by the Digital Banking Report shows that over half of banks with assets of €86.22 billion or more already have an open banking strategy in place or say they will have within a year. Overall, 24 percent of financial institutions (all tiers) have a strategy, and another 21 percent plan to implement one in the next two years.

In the United States, regulators are not setting the open banking agenda, as they are in Europe, Australia, India, or Brazil. It’s commercial self-interest, good old-fashioned competition in an ever widening ecosystem owing its lush good health to technical innovation and the mutual benefit of value exchange. The APIs on which much of this ecosystem rests have contributed immeasurably to Big Tech’s successes and are driving the so-called “platformication” of nearly every business model out there, including banking.

 

Open banking can benefit banks and credit unions in several important ways, including:

 

I will go into some of these in greater detail in my next couple of blog posts. Today, I’d like to underscore how vital third-party partnerships and cross-organizational collaboration is in achieving each of these benefits, especially for institutions where the digital mindset is not yet pervasive and relevant expertise thin on the ground, which is to say, most banks and credit unions.

 

With open banking, small isn’t the big deal it used to be

 

I recently read that JPMorgan Chase’s annual tech spend is around €6.90 billion more than the combined amount at all 94 US banks with assets between €8.62 billion and €86.22 billion. Still, no institution – not even JPMorgan Chase – can do it all, well, and at the speed of change we are seeing. The days of going it alone are over.

There is a growing ecosystem that combines the best resources, niche products and services, a ton of data, and existing and potential customers. Using APIs, smaller banks can access the ecosystem and contribute to it through banking-as-a-service or -platform models. They can do pretty much everything their giant competitors do, faster than they could have before, with less risk and fewer development and operational costs, relatively speaking.

 

Partnering for the best value in open banking

 

Developing an open banking strategy and navigating the highly dynamic fintech ecosystem isn’t easy. Banks without dedicated DevOps teams and sandboxes usually need a partner to guide them through the process of testing and integrating complementary third-party products and services or facilitating the same for their prospective fintech partners.

FutureBank is a fintech marketplace and technology platform enabling banks and credit unions of all sizes to test a wide range of third-party products at scale. There is minimal upfront cost and significantly less risk involved in making an investment. Compatible with over 6000 financial institution back-end systems, we offer a single integration point for fintech technologies for rapid time-to-market.

I would like to invite any bank or fintech planning on or considering a banking-as-a-service or -platform play to view our offering, which I believe is unique in the market for its focus on both ends of the open banking spectrum, if not also the breadth of pre-integrated technologies on offer.

 

Looking to protect your institution’s future and explore new opportunities in open banking? Contact FutureBank for a presentation.

The convergence of tech and COVID-19, and the future of Wallets. Are you ready?

The convergence of Customer Experience, Open Banking, AI, and COVID-19; and how it is disrupting the future of digital wallets

Author: Martin Dippenaar

Global Kinetic is a Fintech software development company, and over the last 2 decades we have worked with many local and international banks, financial institutions and Fintechs. Towards the end of last year, some of our clients, and many companies around the world, were talking about Digital Transformation.

Digital Transformation is essentially three things:

    1. enabling the company to deliver innovation faster,
    2. new technology, and
    3. placing the correct functionality in the hands of users.

It is about technology, but it is also about culture.  Companies had realized that to be relevant in the future, they had to create digital processes and keep up with the rapid pace of technology changes. Some took it more seriously than others, as they had already started to see disruption in their own verticals due to new technologies being exploited by up-and-coming startups, and new markets being created through innovation. There was a lot of talk of “All companies are tech companies”, but this talk was mostly seen as something that is only important strategically over a medium to long term; maybe the next 5 to 10 years.  Up to that point, a staggering 70% of companies were failing in their transformation efforts. These failures happened for many reasons, but mostly because of lack of drive by top management, as well as companies not accepting what Digital Transformation entails. Most companies felt that their digital offerings, in other words, the products in the hands of their consumers combined with their other services, were adequate to stave off competition. Many big companies, banks specifically, had started to notice some disruption in their traditional marketplace, and had created massive funds to look for new and innovative technology to either invest, or to purchase outright. These banks have noticed the emergence of many new challenger banks as well as non-bank companies moving into the banking space. Companies such as Amazon, Apple, and closer to home, various new challenger banks such as Thyme bank, Discovery Bank, and many South African retailers challenging the banking space.

Companies have started piloting many of the relevant technologies. Figure 1 shows some of the technologies that I thought was relevant, plus the stage that they were in. I have included some processes and concepts into this slide as well. The circles show, from the outer layer to the inner layer, the adoption level of these technologies and concepts. The items in red are the ones who would most likely result in transformational business impact.

Figure 1:

figure1

The center is “Mainstream”, or those technologies and processes that are used daily by many organizations. They may not be mature, but they are in common use. Some technologies, like hybrid cloud and API platforms have become mainstream; although I should point out that Open Banking (a super important API Platform implementation), is itself mainstream in many parts of the world, but is not yet so in South Africa. In the Fintech space, the adoption of some of these technologies is either promoted or inhibited by regulation, or the lack of regulation.

I include Digital Transformation here in the Early Adoption ring. In a normal world, I could have asked for a show of hands of who had embarked on Digital Transformation at the end of 2019, but take it from me, not many companies had. Also in the Early Aoption ring I have included Immersive Media (i.e. Virtual and Augmented reality), Internet of Things (i.e. devices connected to the internet that makes our lives easier or more informed), Blockchain, Instant Payments (not really a thing in South Africa but very important in other parts of the world), Natural Language Processing, and Artificial Intelligence. Remote Process Automation, even though it is a type of AI, has not had the early adoption that AI has had. These are chatbots and other types of automation that hopefully provide your customer with a better experience.

Closer than “Emerging” is “Adolescent”, or the technologies that are coming of age. For me 5G, a super important technology for the future, and Remote Processing Automation, are still in this circle but touching “Early Adoption”.  5G, which is the next iteration of mobile bandwidth, will transform the way we communicate with our customers, and enable applications that are not possible without it. The outer ring is “Emerging”; those technologies on the fringe which have the power to eventually transform the world. I only include Quantum Computing in there, because of all the technologies presented here, Quantum Computing and AI will change the world as we know it – but that is still some years off.

So, to me, this was the world at the end of 2019: with some companies taking advantage of the emergence of new technologies and processes. Many companies, however, either ignored these up-and-coming technologies, didn’t see the relevance to them, or decided to look at it later.

Eight months later, the global pandemic had changed the face of the business and the consumer world entirely. We are used to expecting disruption in verticals, yet we have never had a disruption that touched every person, and every business, in the world at the same time.  Suddenly, people can’t go to the office, people can’t go to branches and shops, and people do not want to touch anything or be in close proximity to others.  All of a sudden, companies realized that they have to get their full feature set of products into the hands of their consumers or die. Not only that, but their employees were mostly not at work; slowing business pace dramatically as companies tried to figure out how to work with their staff being mostly remote. Companies that had embarked on Digital Transformation in 2019 or before, were now at a distinct advantage compared to those who hadn’t. As were those companies that played directly into the new behavior of clients. Wallets and touchless transactions, previously a convenience product, suddenly became essential, as people started showing a reluctance to handle cash. In South Africa, companies like SnapScan and Zapper were at an advantage, providing levels of touchless functionality that cards and cash cannot.

The global pandemic caused a push of technologies that were in the Emerging stage, into, or a lot closer to become Mainstream. This slide shows how many of the technologies that were in the early adoption space, have suddenly being squeezed by COVID into the Mainstream. All of a sudden you need your full product suites, including onboarding, to not only be fully digital, but also a fantastic experience for your customers.

Figure 2:

Nearly all the companies we speak to since the COVID-19 pandemic, have accelerated their Digital Transformation and the adoption of what was previously seen as early adoption technologies. Companies are suddenly investing in RPA, Artificial Intelligence, Touchless, and relooking at the customer’s User Experience. This is the crux of the matter: your customer’s digital experience, and for the Financial Sector, your wallet or mobile banking app.

The Wallet

For today’s customer, transacting is about convenience, and customers expect a full digital service with as few impediments as possible. Customers expect easy onboarding without having to go into a branch or office. Customers expect to get hold of you easily and talk to you when they want to; and when it suits them. Customers want to transact without touching anything, and they want to do it everywhere, not only in shops, but also online. Customers also expect that you are trustworthy and that their information and transactions are secure. Your competitors will be offering this to your customers.

You will also notice traditional banking apps are now starting to get the functionality you previously expected in wallet apps, but not necessarily in your banking app. Nedbank’s latest update allows you to scan QR codes directly from their banking app using Zapper, Snapscan, Pay@ and Masterpass, and allows you to pay at restaurants and even at malls to pay for your parking ticket. Expect touchless technology to roll out in most big South African banks’ mobile apps this year. Shoprite’s new app and product requires no FICA, only your ID number, and has no transaction fees, or onboarding or monthly fees at all. No transaction fees.

So wallets and mobile apps are becoming your near-exclusive touchpoint or channel with your customer. It is how you put your product in the hands of your customer. It is how you communicate with your customer, how you advise them with added services, and how you build your brand. The question is: how do you compete with new agile Fintech’s, challenger banks, and non-traditional companies coming for your customer? And how do you stay relevant, not only with technology, but innovate as well?

The Future

I am envisaging a world where a couple of things happen in the wallet space beyond the current expectations of touchless, easy onboarding, free transactions, convenience of instant payments to friends, and for bill payments alike. Some additional features may include:

    1. customers will be offered new ways of interacting with their banks,
    2. Artificial Intelligence and your knowledge of your customer will be mined to provide exactly the service your customer needs at the right time,
    3. Banks will not be the only ones competing for your customer. Your will be competing with free services.

In terms of customers being offered new ways of interacting with your banks, don’t expect the wallet to remain on your phone. Many of us already use voice assistants, and expect services like Amazon’s Alexa, Googles Home and Apple’s Home Pod to provide your full set of services by voice. These applications will be able to do everything from onboarding, opening and changing accounts, communicating with you, all the way to transacting. Expect people to talk to you in the language they want. {and have their voice translated in real-time?}

This year, most phone providers will start releasing 5G enabled phones. Besides the security and fraud prevention that this will allow, new AR products like Apple’s Glasses will require 5G to enable all functionality from within a private augmented reality world. This is not sci-fi; these glasses are expected to be released next year. No more phone required; and definitely no physical wallet required.

Artificial Intelligence is used more and more to interact with customers, as well as to predict what customers want; and offer that to them. We are not unfamiliar with this idea, however there is a shift in customer’s using AI to figure out what is best for them. Artificial Intelligence will allow applications to pay bills for the customer, or track expenses and spending behaviour without explicit instructions from the customer. Artificial Intelligence applications will also suggest that customers switch products or accounts from one service provider to another, or do it seamlessly based on what it already knows about that customer. Expect AI to do a lot of work on behalf of the customer. Expect new Fintech products that leverage this capability on behalf of the customer.

Banks are not the only ones vying for your customer’s attention. New Fintech products emboldened by Open banking and its successor, Banking as a Service, will allow the wallet behavior I just spoke about. Wallets, or mobile banking apps, will be able to access services instantly at banking institutions; enable a customer experience where the customer doesn’t necessarily see your brand as the overriding factor when allowing their AI apps to switch products from your bank to another. Banks have long depended on the trust built over the years with their customers, as well as the trust that customers put in banks due to regulation and compliance. Yet research shows that younger people are totally comfortable using new peer payment products.

In addition, new entrants like Facebook with its desire to be a global bank providing free banking services to its 2.6 billion active daily users, will be vying for your customer.

What to do

In considering all of this, what should businesses do?

  1. Take your Digital transformation seriously. Speed of delivery and getting innovative products in the hands of your customers is imperative.
    a.   Be ready to reinvent and look for opportunities with partners or up-and-coming startups,
  2. Understand what is coming from a technology perspective and ensure your rolling strategy is on point.
    a.    If you are a bank, consider how you can use Open banking and Banking as a Service to expand your offering and expand your channels.
    b.    In order for banks to survive into the future they need to own the technologies that are enabling consumer usage.
    c.    Fintechs have been encroaching on incumbent banks for a while now, and by moving to Banking as a Service, banks can turn these threats into opportunities,
  3. If you are a bank, consider that your competitors are moving to feeless banking and no-fee transactions.
    a.    How will that affect you, and how can you change your business model to compete?
  4. Use data and analytics to drive decision making,
  5. Lastly, own your customer. Your customer base is everything.

I want to refer back to Figure 2. I have not mentioned the triangle in this graphic as yet, but you will notice that it is the three pillars of Digital transformation: Business, Customers and technology. Without these three being in balance you will not have true Digital Transformation, and it will be more difficult for you to grab opportunities and innovate.

Food for Thought

Finally, have a look at this meme. Most of you would have seen this over the last year or so. It attempts to frighten but it also intends to convey how disruption has touched many industries. The biggest taxi company in the world owns no cars. The largest accommodation provider has no real estate and so on.

I would like to present this in a slightly different way. This is my interpretation of the previous graphic.

It is clear from these disruptive technologies and companies that the customer is the asset and the differentiator.

Lastly, I want to add another meme for you to consider: “The world’s biggest bank has no gold but has 3 billion customers”. This is a future scenario, and the signs are already there.

Oradian and Instafin Partnership with FutureBank Platform

Oradian and Instafin Partnership with FutureBank Platform

Oradian and Global Kinetic integrate their Instafin and FutureBank Platform products into a seamless banking experience aimed at the unbanked in Nigeria, Ghana, the Philippines and more.

In total; 2.5 billion of the world’s adults don’t use formal banks or semi formal micro-finance institutions to save or borrow money (1) . Of that number nearly 2.2 billion of these unserved adults live in Africa, Asia, Latin America, and the Middle East.

This is problematic as it restricts these populations from having significant benefits and increases in financial assets for families and individuals that have the ability to gain account ownership.(2)

Micro Financing Institutions (MFIs) in frontier markets have unusually made lending decisions without access to the sort of customer data and documentation commercial banks take for granted: credit scores, identification documents such as passports or government ID cards, bank statements, lending history and collateral.  These unbanked individuals do not have the necessary documentation needed for traditional lending methods from banks. This is why Oradian made an effort to physically visit these communities and find groups of people who want to lend money. Lending activities are then tracked on Oradian’s cloud-based core banking system Instafin via tablet interfaces and the lender can come back periodically to collect the returns from one of the unbanked individuals in each of these communities.

It is evident from this case that there is a growing need for a digital banking system that may assist and connect these unbanked populations to relevant banks and providing them with access to the financial services they need.  While Oradian’s Instafin core banking solution is able to manage financial products and the record of accounts for this market, the FutureBank Platform can provide regional, demographic specific and targeted digital user journeys for the unbanked user in this market.

What is Oradian?

Oradian is a company founded in 2012 that provides MFIs in countries with underdeveloped banking infrastructure with a finance management platform for personal banking.

The Croatian fintech company was originally focused on Nigeria , where it grew its customer base to 24 MFIs with roughly 490,000 end users. Philippine Central Bank supported the project and since the young company has had a rollout in the Philippines, where it already works with 18 MFIs. Oradian today is also present in Ghana, Liberia, and Malawi.

What is our collective vision with this project

The long term vision of Oradian’s Instafin and Global Kinetic’s FutureBank Platform is to connect 100 million previously unbanked families to the financial system globally, especially in areas where technology is underdeveloped, through an end-to-end digital banking experience.  Our combined software helps MFI’s grow their businesses and lower the cost of finance to end users. In order for this project to be implemented, our FutureBank Platform will be used in conjunction with Instafin to provide a seamless banking experience. Collectively, we can make an accessible user interface paired with connection to the relevant lending accounts for the unbanked target market.  We can also provide services to the unbanked that will make their lives a whole lot easier, like being able to provide prepaid services directly from their mobile devices so that they can eliminate costly travel to urban areas in order to purchase electricity and other basic services. Instafin is the operational platform on which microfinance institutions, cooperatives and credit unions manage their day-to-day operations, and FutureBank Platform is the digital experience that the unbanked user interacts with.

The number of people who own smartphones is increasing in Nigeria, Ghana and the Philippines as the retail price drops. This means there is a growing opportunity to extend Oradian reach by making use of digital banking with the help of FutureBank.

Instafin and FutureBank     

 

To create the tools for financial inclusion and make them accessible to all financial institutions The FutureBank Platform is an ideal product to integrate with Instafin in order to reach this goal to give the system a useful and customizable front end banking interface.  Each region and demographic group has its own nuances and requirements, and the FutuerBank Platform is specifically designed to accommodate rapid, agile customization to user journeys that can be quickly deployed and easily scaled.  The technology also supports offline capabilities and zero rated services through integrations with regional Mobile Network Operators (MNOs) in Nigeria, Ghana and the Philippines.

Instafin can reduce high operational costs through automatic reporting that dramatically speeds up time-consuming month-end reporting processes, thus minimising inefficiencies that exist in across these rural banks servicing the unbanked population.  Instafin has other features such as messaging, automatic updates, maximum data security and pricing engines. It also provides training and implementation services on the ground in the areas they service — including data migration from their previous CBS or from spreadsheets.

The FutureBank Platform provides the unbanked users with access to their basic financial information, such as their current balance, transactional history, loan account status and other repayment information.  It can also provide direct access for the user to purchase pre-paid services available to them based on their area. These kinds of features add immediate value to the quality of life for the unbanked individual and puts them on a path to financial security and wealth for their families into the future.

At its core, the FutureBank Platform is a MicroServices API platform that integrates into the most popular Core Banking systems in the world.  The Banking API exposes a common interface to digital channels and FinTech partners whilst abstracting the complexities of the underlying legacy Core Banking systems.  The Banking API can provide a single end point into multiple disparate Core Banking systems which is useful in the case of the project with Instafin.

FutureBank uses unique asymmetrically encrypted HSM tokens to secure each transaction through the platform - adding an additional layer of security.  The platform exposes an event driven SDK architecture for easy integration into 3rd Parties, Merchants and Individuals.

SOURCES:

      1. Source: McKinsey research conducted in partnership with the Financial Access Initiative (a consortium of researchers at New York University, Harvard, Yale, and Innovations for Poverty Action); we relied on financial usage data from Patrick Honohan, “Cross-country variation in household access to financial services,” Journal of Banking & Finance, 2008, Volume 32, Number 11, pp. 2493–500.

  1. FITZPATRICK, K. (2014). Does “Banking the Unbanked” Help Families to Save? Evidence from the United Kingdom. Journal of Consumer Affairs, 49(1), pp.223-249. doi:10.1111/joca.12055

LendIt FinTech Conference: FutureBank and Connekt

FUTUREBANK DIGITAL AND API BANKING PLATFORM INTEGRATES ENTERSEKT’S SECURE CONNEKT PAYMENT FUNCTIONALITY AT LENDIT FINTECH USA 2018

Global Kinetic team up again with their security partners and industry leaders Entersekt to make FutureBank a leading digital banking platform with additional payment features

PALO ALTO - April 9 – Global Kinetic will announce at LendIt Fintech USA, the world’s leading event in financial services innovation, that it will be integrating Entersekt’s Connekt functionality into the FutureBank platform. FutureBank’s unique ability to abstract the complexities in legacy core banking systems and customize digital channels through its technology platform helps banks and disruptive FinTech companies work together more efficiently.

The growing digital banking market in the US has become vulnerable as consumers are frustrated by poorly designed mobile apps that often have weak security implementations and limited payment functionality. The FutureBank platform can now offer converged payment acceptance through Connekt.

Entersekt an industry leader in mobile authentication and security and Global Kinetic, the development partner behind FutureBank, are experts in creating mobile and enterprise solutions - particularly for banking systems. Therefore, it is an ideal strategic partnership to innovate and improve FutureBank using the payment services provided by Connekt.

Connekt Functionality

Global Kinetic concluded agreements with Entersekt earlier last year in order to embed their technology into the FutureBank platform allowing it to support out-of-band unique device registration and soft token generation for securing online channels. Connekt leverages this technology for digital commerce enablement and includes features such as HCE wallets for tap to pay, QR-based scanner to enable payments, and 3-D Secure 1.0 and 2.0. FutureBank will now be able to offer these capabilities through the platform that directly integrates with popular core banking systems.

FutureBank is diverse in its capabilities as a digital and API banking platform. Users are able to manage their cards, bank accounts as well as beneficiaries across multiple core banking systems, from one single dashboard - hence the focus on security, authentication and being compliant with regulations.

 Our platform is designed to make it easier for banks to integrate emerging FinTech into their ecosystems.  Having the ability to offer banks a converged payment capability directly from within the FutureBank platform is incredibly valuable to our customers.” said Sergio Barbosa, Chief Information Officer of Global Kinetic.

LendIt Fintech USA, a gathering of more than 6,000 industry professionals in San Francisco, showcases the leaders in innovation across financial services including the digital banking, fintech, blockchain and lending industries.

For more information about FutureBank, visit https://getfuturebank.com/

Coupon code for LendIt:

We would appreciate seeing you at the event and therefore would like to invite you and your colleagues to join us. We have a coupon code to save you 15% off your initial ticket price - see the code below and register at lendit.com/usa:

"FutureBankPlatform15%"

About Global Kinetic

Global Kinetic is a leading software engineering company with a team of over 100 tech-savvy and inspired developers, engineers, designers and creatives.  This group of highly fuelled people work together at Global Kinetic to spearhead and develop brilliant products, including some that seriously disrupt the market. One of the coolest places to work, this company has the nicest people creating amazing apps and products, which they do with flair and sheer professionalism, mixed with a dash of fun.  Steeped in expertise*, they designed and created the world’s first fully immersive gamified children’s mobile banking app in Unity for Standard Bank as one example; in another they designed and developed PayToday, the Venmo for Southern Africa. They’ve built slick and powerful mobile banking experiences for Old Mutual, Bidvest Bank and many more.  They have great offices in Century City, as well as in Palo Alto in the US. For more information, visit www.globalkinetic.com

*Global Kinetic (GK) provides enterprise solution engineering services and have capability across the application stack, predominantly .NET Core, Java or Scala deployed to Azure, AWS or physical infrastructure on the enterprise side, and native or hybrid technologies on the mobile side for Apple, Android and Windows Phone. Global Kinetic are evangelists of agile development methodologies, implementing SCRUM on customer projects and provides professional services around the delivery, quality assurance, test automation, requirements gathering, analysis, UX/UI design and architecture

About LendIt Fintech

LendIt Fintech is a recognized global internet finance industry leader, founded in New York in 2013. Its aim is to gather industry elites to discuss and explore latest trends in the development of international financial technology. LendIt Fintech has become the largest event in financial services innovation as it hosts three annual conferences, LendIt Fintech USA, LendIt Fintech Europe, and Lang Di Fintech, and dozens of complementary online and in-person industry events. LendIt also owns and operates one of the world’s leading industry educational channels, Lend Academy.

For more information, tickets and sponsorship opportunities, please visit www.lendit.com.

The Ever Growing FinTech Trend

People with banking apps are the most engaged; with 70 percent of users reporting they use the apps at least once a week. 

2018-02-20 4:30:32 PM


WASHINGTON - Recent news surrounding FinTech and financial applications shows that the number of FinTech applications found on the average smartphone user's device has increased significantly. The study was conducted by a group from Washington and the results were released by Robert Barba from Bankrate.com in February 2018.

The world of FinTech applications have seen an explosion in popularity recently - including the rise of including AI in these technologies. 

 

 

The results from the American based study indicated that the average smartphone user was likely to have 2.5 financial or fintech related applications on their smartphones.  According to Bankrate.com ,“Sixty-three percent of us have at least one, and the majority of those are bank apps — Chase, Bank of America, your local community bank,” as told by Robert Barba to WTOP.

Financial applications must be designed securely and must be reliable as we see more people choosing to use FinTech applications over traditional money management and banking methods. 

Infograph

 

 A whopping average of 3.6 fintech apps are found between smartphone users aged from 18-38 years old.  Banking apps are the most common, followed by peer-to-peer payment apps, such as Square and PayPal. But the fastest-growing category of FinTech apps are budgeting apps. People are curious to see where their money goes in an aggregated application.

Individuals who are less likely to have FinTech apps installed on their devices include those who believe it will put them at risk of fraud. This is not the reality of financial applications on smartphones as Bankrate said that it is easier for banks to verify your identity when using mobile cellphones . This is where the partnership that Global Kinetic and Entersekt have thrives best - in developing secure FinTech solutions.

What this means for Global Kinetic

 

There has been a substantial increase in business interest and operations in the company overall due to the increasing interest in FinTech trends in the market. Global Kinetic deals primarily with financial and transactional software engineering projects.

The new stream of demand has enabled the company to grow and adapt to the global changing needs whilst continually providing service of top quality and efficiency.  This is due to the innovative nature of the company and the numerous successful projects that have been delivered over the past few years in the US, Europe and emerging markets.

 How we can help you

If you're looking for a reliable technology partner to help make your FinTech idea a success -  then you have come to the right place.  We're FinTech specialists, have decades of experience and a track record of successful projects that we have worked on.

One of the latest projects include FutureBank - our open banking platform that is flexible, secure and compliant. We have integrated Entersekt, a leading global IT security solutions company, and the platform now features their multi-factor authentication and their unbreakable security design.  Entersekt are far ahead of any of their competitors in the field of authentication and mobile security, making them an ideal partner for Global Kinetic and FutureBank.

 

Contact us via our corporate website and let us bring your application ideas to life: https://www.globalkinetic.com

About Global Kinetic

Launching a rocket from a lighthouse

Achieving the seemingly impossible, a group of highly fuelled people work together at Global Kinetic to spearhead and develop brilliant products, including some that seriously disrupt the market. One of the coolest places to work, this company has the nicest people creating amazing apps and products, which they do with flair and sheer professionalism, mixed with a dash of fun.

Steeped in expertise*, They designed and created the world’s first fully immersive gamified children’s mobile banking app in Unity for Standard Bank as one example; in another they designed and developed PayToday, the Venmo for Southern Africa. They’ve built slick and powerful mobile banking experiences for Standard Bank, Old Mutual, Bidvest Bank and many more.

Global Kinetic is a leading software engineering company with a team of just under 100 tech-savvy and inspired developers, designers and creatives. They have great offices in Century City, as well as in Palo Alto in the US. For more information, visit www.globalkinetic.com

*Global Kinetic (GK) provides solutions across the application stack, predominantly .NET or Java deployed to Azure, AWS or physical infrastructure on the enterprise side, and native or hybrid technologies on the mobile side for Apple, Android and Windows Phone. GK implements SCRUM on all customer projects and provides professional services around the delivery, quality assurance, test automation, requirements gathering, analysis, UX/UI design and architecture


References

Clabaugh, J. (2018). Do you have 'fintech' on your phone? Most of us do. [online] WTOP. Available at: https://wtop.com/business-finance/2018/02/fintech-on-your-phone/ [Accessed 19 Feb. 2018].


FutureBank – Global Kinetic’s FinTech Hero at US Money2020 Expo

Global Kinetic, a specialist in transaction processing software and digital banking solutions, will showcase its avant-garde FutureBank platform at Money2020 this month in Las Vegas and the company is bracing itself for a deluge of enquiries and new business.

Martin Dippenaar, founder and CEO of Global Kinetic says that FutureBank is opening the door to a huge US market for the company.  “What we have developed here is a product that, through aggregation with key partners, gives customers a completely secure multi-platform banking app.  There is huge scope in the US as no such technology like ours currently exists in the FinTech space – and we have developed FutureBank to target that market.”

Global Kinetic CIO Sergio Barbosa adds: “When we exhibited at TechCrunch in San Francisco in September, we were overwhelmed by the response and we fully expect the same kind of response when we’re at Money2020.”

In short, FutureBank offers a complete digital banking solution for any financial services company.  It is secure and can be customized for any mobile and Internet banking solution with an Open Microservices API that integrates with the most popular core banking systems in the world.  Global Kinetic also provides an architectural blueprint and code framework which makes FutureBank an ideal solution for any new FinTech product.  The platform is both a code base and a development pipeline that provides the necessary acceleration needed by any FinTech product business so that they can concentrate and focus on developing the specific feature set that makes their product unique.  It supports a number of core banking product integration including products from Oracle, FIS and more.

FutureBank Partners

Built into the FutureBank platform are a number of key OEM (Original Equipment Manufacturing) partnership agreements that Global Kinetic have concluded which collectively enhance the capabilities of the platform.

First and foremost is the embedded Entersekt technology which secures each transaction through the platform and also secures digital channels through multi-factor authentication including biometrics.  Entersekt is an innovator in push-based authentication and app security. Built on open technologies for high availability, scalability, and simple integration, Entersekt’s patented security products protect millions of devices and transactions daily, while complying with the world’s most stringent regulatory guidelines. Enterprises across the globe look to Entersekt to strengthen the bond of trust they share with the customers and to build on those relationships by introducing compelling, user-friendly new mobile and online services.

Another key partnership in the list lives in the area of documents, bill presentment and payment.

InfoSlips is a leader in next-generation secure digital document delivery which delivers hundreds of millions of secure digital documents to millions of recipients throughout the world and is now integrated in the FutureBank platform.  InfoSlips improves deliverability while consuming data from multiple sources in order to create engaging and useful documents. Scalability allows the production process to composite and secure millions of documents a day and allows recipients to access their InfoSlips documents from any device. The partnership between Global Kinetic and InfoSlips brings this capability directly into the Issuer’s Mobile and Internet Banking applications.  This has great potential as the FinTech industry strives for less friction in Bill Payment as well as KYC (Know Your Customer) processes and increased security in the transmission and protection of a user’s personal information.

About Global Kinetic

Launching a rocket from a lighthouse

Achieving the seemingly impossible, a group of highly fueled people work together at Global Kinetic to spearhead and develop brilliant products, including some that seriously disrupt the market. One of the coolest places to work, this company has the nicest people creating amazing apps and products, which they do with flair and sheer professionalism, mixed with a dash of fun.

Steeped in expertise*, Global Kinetic makes both end-users and their clients equally happy because they get the stuff right every time. They designed and created the world’s first fully immersive gamified children’s mobile banking app in Unity for Standard Bank as one example; in another they designed and developed PayToday, the Venmo for Southern Africa. They’ve built slick and powerful mobile banking experiences for Old Mutual, Bidvest Bank and many more.

Global Kinetic is a leading software engineering company with a team of just under 100 tech-savvy and inspired developers, designers and creatives. They have great offices in Century City, as well as in Palo Alto in the US. For more information, visit www.globalkinetic.com

*Global Kinetic (GK) provides solutions across the application stack, predominantly .NET or Java deployed to Azure, AWS or physical infrastructure on the enterprise side, and native or hybrid technologies on the mobile side for Apple, Android and Windows Phone. GK implements SCRUM on all customer projects and provides professional services around the delivery, quality assurance, test automation, requirements gathering, analysis, UX/UI design and architecture.

Issued by Wired Communications on behalf of Global Kinetic