Apple’s credit card announcement was about as glitzy as it gets in the world of consumer banking–cash back, no late fees, transparent interest, and slick features–all rolled out to a massively dedicated customer base. If banks didn’t think they had competition coming from all sides, this should be an eye-opening moment.
Banks and credit unions today are competing in unfamiliar territory. Chartered banks, non-chartered banks, fintechs, multi-media companies and startups are all getting in the banking business. So, what can regional, community and even big banks do about it? Simply put, pivot.
A direct approach
Here’s how: launch a digital bank on next-generation technology. Before you wince, stay with me. This is possible, even if your bank is built on legacy technology.
The biggest pain point we hear from bankers is that the struggle of converting to a new core is too arduous and excruciating to start down the path of open, next-generation banking. There is a reason it is often referred to as brain surgery–it hurts.
So how does a bank not rely on legacy technology and still compete in today’s market? By creating a direct bank.
Apiture understands the power of modern banking architecture, which is why we created a direct banking solution.
We’ve devised a step-by-step plan that requires zero in-house development, so your development team can stay on task.
In building a standalone direct bank, you are able to create a singular brand on its own for a customer base that might be enticed to look elsewhere when they realize they can’t get from you what they are seeing at Apple, Venmo and other emerging fintechs.
Apiture’s open API architecture allows you to offer real-time digital banking solutions to customers on the Finxact core, without migrating everything over all at once. You can migrate things over separately when you are ready and build innovative features for 21st century customers right now.
Digital integration with Apiture means being connected to an ecosystem of cloud-native partners so you can extend services across your existing channels and new ones.
Apiture believes in providing financial institutions like yours with the open, cloud-based building blocks they need to not only enhance their current systems but, transform them completely. In this day and age of innovation and surprising competition, we are here to help you evolve.
The last thing any company wants to become is obsolete. We have all seen it happen when gradual changes in the market suddenly drive companies into dinosaur territory. No one wants to be the next Blackberry or Blockbuster.
Developing a direct bank is a step in the right direction. It means that you can redefine the customer experience and experiment with new features and servicing without interrupting current customer expectations. It not only is a pain-free plan, but it is also a path with many possibilities that can answer some of the pressing questions today’s banks have.
With a direct bank in place, could your financial institution have the bandwidth to acquire another bank and expand your deposits? With a standalone digital operation on new technology, could you attract an entirely new customer base? Would a next-generation platform free you from the restraints of legacy technology?
The potential is endless.
If you don’t think some of your customers are going to jump ship when Apple, or any new crowd-pleasing company, offers the next big thing, think again.
It’s time to accept the challenge in the market and give your customers the freedom to control their money in new ways. Be the bank you know you can be. We can get you there. Learn how.