Tag: Bank as a service

Bank as a Service (BaaS) is an approach to banking that delivers banking services through cloud-based platforms. It allows banks to outsource the development and operation of their online banking systems, while providing their customers with the same functionality they would expect from a traditional bank.

InvestGlass helps banks to digitalize their services by providing a cloud-based platform that allows them to outsource the development and operation of their online banking systems. This allows banks to focus on delivering quality services to their customers while InvestGlass takes care of the back-end operations.

SME lending: Where is it now, and where is it headed?

Small to medium enterprises (SMEs) are the backbone of many economies across the world. They create jobs, contribute greatly to innovation and offer a range of products and services that keep our society functioning. However, SMEs often lack access to financial resources such as working capital loans, mortgages, or other financing options traditionally available exclusively for large companies with deep pockets. In this article, we will present fintech solutions that can offer you finding solutions for small businesses. We will present existing funding schemes and the future of this sector.

What is SME lending market versus the traditional bank loan?

SME lending is part of a traditional bank loan service, which is typically reserved for large companies with deep pockets. When it comes to lending, size matters because banks see a company’s ability to repay as largely based on the business’s assets or collateral. Traditional banks are less worried when they have industry expertise. As you might know, each time you are asking for a loan, the bank has to analyze your company against existing data sets. If this status is narrowed the funding will just be impossible. The bank wants to limit credit risk.

What are the four types of business loans?

The four types of business loans are :

– Equity: Lenders supply money to a company in return for shares of the company’s equity.

– Debt: The lender supplies cash, and the borrower pays back with interest over time.

– Mezzanine finance: A mezzanine loan is one that falls between debt financing (with regular monthly payments).

– Angel investors: A group or an individual who provides funds to a new, small company in exchange for partial ownership (usually they are also looking for the opportunity to provide guidance). Angel investors can also be your friends and family.

Those four types of business loans can be organized around at the market portal. With our solution Investglass come up with builds a dozen loan portals. The portal connects clients, firms offering a perfect match between loans: lend and borrow.

Which SME business should you start?

Lending platforms

Lending platforms are an emerging development in the financial services industry. They provide transparent mortgage comparisons and, depending on the platform, advisory services to their customers. Building the platform with InvestGlass is a good start before building a neo bank.

Platforms have become popular due to easier access and the potential for standardization of product offerings among lenders. Lenders are increasingly looking to partner with platforms in order to provide their products for use on a platform.

One of the primary benefits that platforms offer lenders is access to the customer base, which typically exceeds what they would be able to attract on their own due to better conversion rates and lower marketing costs. Small businesses won’t mind searching for support for a new fintech solution.

Platforms can also be a key driver of innovation. For example, by using the customer data they have collected over time, platforms are able to provide lenders with information about their customers which may help them create more effective products and services. InvestGlass white label platform will help you build your own platform. In less than a day, you will build your own SME lending solution with InvestGlass as a backbone.

Government support changes the loans industry with COVID lending. Make a wise analysis as government COVID loan changed the landscape for 12 months offering money to any companies in the Western countries.

Digital processes and repayments algorithm

Digital processes have taken over the customer experience for banking institutions. They may offer digital-only lending to members eager for a quick response, and credit card companies often use advanced digital solutions, such as virtual card numbers or security chips on one’s physical reader to protect their investment from attacks common in the cryptocurrency marketplace.

Industries ecosystems and funding circle

Mortgages are an entry-level product and provide many connecting points for additional products to retail customers, such as insurance. For a long time, this opportunity was hardly used in Switzerland vs London; but when the search for alternatives sources of revenue is combined with opportunities in residential financing (first and foremost), there have been more market participants setting.

How small and medium-sized enterprises can leverage fintech solutions?

Small businesses can leverage invoice finance and benefit from fintech competitive advantage as traditional banks will usually answer with more conservative positioning.

Fintech usually offers modern schemes and understands medium-sized businesses faster than traditional banks tanks to digital onboarding and automated notation replacing manual expertise.

As we offer with InvestGlass and open banking solutions, lending can be connected directly with lenders in a cloud-based solution. Our solution offers secure access for funding and customers will find a range of credit services. Investglass does not provide financial service so we will connect the CRM to an accounting tool relevant to your country.

If you are specialized in UK finance, we have connections for UK SMEs lending fintech. Authentic specialists will look into your specific lending focus to help you purchase the best fintech solution driving your future growth.

The data is hosted on swiss servers in Geneva and Lausanne. If required by your industry regulator or local government, we can host the InvestGlass CRM system on your server. Hosting the system could be pricey for a small business and we suggest usually starting with the cloud-based solution and then moved to an on-premise server.

InvestGlass fintech specialists will first analyze your specific targeted business lending sector and then manage the orchestration of your cloud solution to invoicing finance fintech, risk management solutions, antimoney lending applications, and trading applications.

Bank as a service, CRM for banking, Fintech ecosystem

Is it better to build or buy a bank in Switzerland?

We recently collaborated with groups that are looking to buy a bank. What are my thoughts about the pros and cons of applying for a license versus buying a regulated company?

Clearly the main disadvantage of buying a regulated entity is that it will inherit with some liabilities and obligations towards third parties. For example, employees that don’t want to leave, and board members that have complex reputations, clients’ accounts with poor KYC.

Usually existing banks and asset managers have also existing vendors with depreciated solutions and migration can become a nightmare.

Sisyphe, par Franz von Stuck, 1920.

The advantage of buying a licensed company is that you will perhaps save time. You might also be interested to develop existing business with new principles and services like bitcoin.

This obviously is interesting if they have a properly manage CRM or client relationship management tool. You need to read the CRM and PMS audit trail first.

Now, if you go to the acquisition scenario, and you wish to buy a company you might have to build a new team and with the swiss regulation… highly skilled and expensive local professionals. You will need also to apply for an official approval for the change of control, this means that the new owners should be approved by the regulator too! The new board of directors should be structured with high reputation members.

The regulator may also ask you what the new business model are and how this new business model will improve the current situation.

When you start this new bank it is also very likely that the focus will be important on the bank inflows. Each time a stakeholder, or a board member would do any type of inflow or outflow a strong surveillance should be enforced.

The complexity of this process is actually working fine but regularly need updates. We could not advise you better than using InvestGlass remediation tools for a complex on boarding and continuous monitoring. The idea is to be able to show to auditors at any time, yes at any time, that the due diligence and AML, LBA, sanctions check, proof of funds… was done correctly.

Is it better to buy or to build?

If it is to add another shareholder and not change the business operations into an existing structure well definitely it is better to buy.

Now if you have to change everyone in the board, in the operations, clunky pms software to then it’s perhaps better to start something from scratch and applying for your own license.This could be the right time to implement tool for SRI ESG gamified and better onboarding – for the next generation. 

And you would you buy or build ?

Bank as a service, neobank

What do Fintech Consultants do?

The consultant should be the evangelist for your fintech. They are responsible for educating, understanding, and collaborating with you to ensure that the solution is something that matches what you need as a client’s organization or company. Consultants have deep knowledge of technology and markets; they know how to read trends in the FinTech landscape. And this reading helps them derive insights about possible solutions and identify opportunities on behalf of clients

Which firms are financial services specialists?

  • Accenture.
  • The Boston Consulting Group.
  • Capgemini.
  • Deloitte.
  • EY.
  • KPMG
  • AlphaFMC.
  • Chappuis Halder.
  • Aliancy.
  • McKinsey.

Which type of financial consultant should you pick?

And you? We would be glad to discuss with you if you are not in this list. We worked already with some of you here and had experience truly different build phase thanks to your intervention as a “intermediary” partner. Investglass aims to connect the best FinT tech companies together we are working hand-in-hand with FinT tech consultants and business strategy specialists. Building a modern bank or wealth management is a true challenge and we believe that only builders should be listened. Fintech consultants collect unique expertise by asking the right question at the right time.

You will find consultant specialists for payments, capital markets, trading, wealth management and each financial consultant come with their innovation guidelines. Following experts should be done carefully as challenges will vary as well as fintechs solutions.

We strongly suggest your company to know before you start with consultants which innovation you wish for your company. Technology jump can offend your staff and you should make sure that investment will worth it! Financial consultants will answer your questions and drive the future of your firm with most innovative fintech.

What skills do you need to become a fintech consultant?

Well, when we see our favorite consultants… 🙂 Daniel, Joe, Paul, Nicolas, Olivier, Benjamin…. well… passion… they breath fintech companies’ spirit and understand their development standard. They are perfect mediators to create growth and often know when to remove the marketing hype to make sure that your firm will find answers through request for information or request for proposals.

AH! RFI and RFP… a poem. 200-400 questions asked to fintech companies to assess their capabilities to answer your firm requirements.

A good consultant is a hard-working professional, with strong analytical skills and of course a perfect understanding of banking and investment regulations. A great fintech consultant is a team player and knows who to negotiate with clients and fintech companies. Their expertise is then needed for the build phase which is the connection between your existing software, habits and the new fintech company solution. Challenges can start again here as fintech need some space into your bank… and yes innovative schemes can provoke client rejection.

Are financial consultants part of the Fintech CRM revolution?

InvestGlass is the most consultant-friendly CRM. Are you ready to join us?

We know that you work hard to build your business and we want to help you grow it even faster. That’s why we built a CRM that was made for consultants like you. With our intuitive interface, you can easily manage all of your clients in one place without having to switch between systems or spend hours on data entry. You’ll be able to focus more on what matters – building relationships with your customers and making them happy!

We also offer a free trial so that you can try out the product before signing up for an account.

API, Bank as a service, CRM, fintech

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