Tag: neobank

Retail Banking CRM

What is the biggest challenge facing retail banks in 2022?

The turbulent economic landscape of 2020 and 2021 caught retail banking companies off guard, forcing them to set their old business models aside and consider new revenue streams. The coronavirus pandemic was a catalyst for retail banks nationwide to reconsider their legacy mindsets and become more digitally resilient, but what does the retail banking landscape look like in 2022? Let’s look.

What is digital banking & digital banking services?

Digital banking is the process of conducting financial transactions electronically, rather than through traditional means such as visiting a physical bank branch. Digital banking services encompass a broad range of activities, including online banking, mobile banking and remote deposit capture.

Why more customer-centricity with retail banking?

At the very top of the agenda for most financial institutions in 2022 is customer-centricity. There will be a focus on delivering a superior customer experience, alongside operational excellence in 2022 and beyond, as it becomes essential for retail banks to invest in emerging technologies to remain resilient and relevant.

Machine learning and artificial intelligence is now widely used for fraud detection and prevention, as well as for providing tailored services and products to customers. In addition, chatbots are being used more frequently to provide round-the-clock customer service, which is a huge advantage for banks as it allows them to free up staff to work on more complex tasks.

New models have to be made as the general public needs to make informed decisions. FINMA LSFIN, or European MIFID are making the retail advisory market nearly impossible.

Intelligent process automation

According to the financial consulting firm, McKinsey & Company, approximately 50 billion devices will be connected to the IoT (Internet of Things) by 2025, as virtualisation and process automation become commonplace.

3D printing, automation and robots create approximately 79.4 zettabytes of data annually, offering improved insights for greater efficiency and improved decision-making for retail banks. The use of process automation tools in banking, such as digital process automation (DPA) and robotic process automation (RPA), is predicted to continue to grow this year, supported by intelligent automation.

Prioritising digital processes, such as digital loan application management, customer onboarding and new account opening, is essential to create an enhanced customer experience for credit unions and banks alike.

We have seen with InvestGlass banking customers that RPA is now a must. We have built a process for buy now pay later, KYC remediation, cash flow alerts. Digital transformation is also accepted among the leaders and management of banks. Business models are turning to include more services that can be automated.

Applications for mobile banking and payments will continue to soar in popularity, as customers become more comfortable with using their phones to make transactions. In addition, biometric authentication is being used more frequently to improve security and reduce the risk of fraud. This technology uses unique physical attributes, such as fingerprints or facial features.

Ready for cybersecurity in retail banking?

The financial consequences of cyber threats can be dire for the business prospects and reputation of financial institutions. The increase of online data transmission and mobile technology in 2022 will likely lead to a higher risk of both external and internal cybersecurity breaches. : Apple Pay and Google Pay have respective market shares of 43.4% and 25.0% in proximity mobile payments, a nearly $247 billion market.

At the beginning of the pandemic, financial institutions rushed to implement remote working company-wide and pushed their digital banking transformation initiatives forward, leading to increased cyberattacks. In 2022, protecting critical infrastructure and customer information from these cyber threats is more urgent than ever.

Banks are increasingly replacing passwords with biometrics to provide their customers with an additional layer of protection. We are working with the European fintech ONFIDO for this type of onboarding process.

With the recent attack in Ukraine, we will see some new type of threat in the US and Europe. Free movement of cash will be more complex. Of course, this will not affect basic shopping basket operations.

And this covid situation has been horrible for data sharing! Too much data sharing has been realised with counterparts not properly protecting investors’ rights. You certainly heard about the GDPR regulation. GDPR regulation is supposed to protect EU citizens from their personal data being mishandled by organisations. However, it has been criticized for hampering international cooperation between law enforcement agencies.

person holding black Android smartphone close-up photography

Which cloud computing?

To address the increasing need for speed and capacity, both credit unions and banks will likely look to cloud computing solutions to support applied analytics and store data. This can lead to reduced risk of business continuity and security breaches, improved innovation, enhanced efficiency, and increased customer insights. Cloud solutions offer a significant organizational advantage and offer insights that can improve human productivity and benefit back-office and front-office transformation. The rise of banking-as-a-service (BaaS) also accounts for an increase in digital services but which cloud are they using ?

We have been very sceptical of banking turning to Google or Microsoft cloud for security and privacy reason, particularly since the new Cloud Act law. The Cloud Act gives US authorities the right to seize data stored on foreign soil, including data belonging to banks and their customers.

This issue is compounded by the fact that many organizations are still struggling to get a handle on the complex and sprawling digital infrastructure they already have in place, let alone take on new cloud-based services. So, while cloud-based services will depend on the US checking what is inside the bank server ultimately…

With InvestGlass, which is a Swiss family-owned, Swiss hosted solution, we offer banks a unique opportunity to host the data on Swiss servers or even directly on their servers! We believe that the European and Swiss banking industry deserve embedded finance solutions on Swiss servers. This is the best way to make sure that the entire financial process remains on servers you control.

What are the advantages of cloud computing ?

– Scalability. Scalability is the ability of a system to grow or shrink to meet the changing needs of its users. A cloud-based solution can easily be adapted to fit the needs of a growing organisation.

– Cost-effectiveness. Cloud-based solutions are typically less expensive than traditional IT solutions, because businesses only pay for what they use.

– Agility. Agility of fintech help retail banks to move quickly and easily to adopt new technologies and services, which can give them a competitive edge. We will also see more artificial intelligence (AI) in the retail banking sector. Banks are using AI for a number of different purposes, such as improving customer service, fraud detection, and credit scoring. In 2022 is fintech’s demonstrating business profitability by providing genuine value so that their customers start paying for their services. 

– Mass customisation. Inspired from an author we love at InvestGlass – Mr. Joesph Pines

By implementing cloud computing in 2022, retail banks can react quickly to changes in the marketplace and create efficient, responsive, scalable and flexible solutions to replace on-premise infrastructure. With cloud services, smaller banks are now able to compete and drive innovation at a lower cost.

Public, private and hybrid cloud computing allows retail banks to reduce their operational expenses and offer more agile services to remain competitive in the future and embrace digital transformation.

If you’re looking to build, run and scale your digital platform and workflows with ease, get in touch with our experts at InvestGlass CRM today by filling in our online contact form here.

Talk to our team today to learn more about the benefits of CRM for retail banking.

Get started with InvestGlass CRM today

biggest challenge facing retail banks, CRM for banking, neobank

man wearing black sunglasses

How any company can build a neobank?

If you are looking to build and launch your own neobank, there are three main paths you can take:

  1. Become a bank 
  2. Partner with a bank 
  3. Use the Banking-as-a-Service play 

The Financial Times recently reported that a growing number of companies are looking to build neobanks. This is not surprising given the significant potential for disruption in this space. But how do you go about building one? The first step is to identify what problem your neobank will solve, and then think through what processes need to be created or automated in order to achieve this goal. From there, it’s time to start building! Check out these three steps for launching a successful neobank.

This blog post shares in 5 steps what you need to know to start your own bank.

New start-up will benefit from banking as a service plug-and-play approach.

1. What is a neobank versus a traditional banks?

Neo banks usually do not have a banking license, but you can partner with banks to offer services: personal loans, trading, mortgage, tax advisory. Neo banks offer a better user experience. User experience is key to facilitate account opening. A financial institution can help you get a banking license umbrella in the country your company starts. These banks usually have a lot more features than neobanks: they provide saving accounts, checking account services, and loans. You might know – WeBank by Tencent, NuBank, digibank (by DBS) or Marcus by Goldman Sachs, Yolt, and Moven are examples of neo banks. These digital banks mostly use completely new technology platforms, thereby reducing dependencies on their parents.

2. Why setting up your own bank might be beneficial to you – do you need a banking license?

You don’t need a full baking license to start your neo bank. You can create your digital bank without your own banking license. Most challenger banks started with simple core banking systems and an umbrella license. An umbrella license is a license you are sharing with a traditional bank.

A banking license can be extremely expensive and long to obtain. Finding the right banking partner, or financial institution can be an easy way to start your business.

For card issuing, you’ll find in most countries local vendors that will produce prepaid cards and even offer a technology infrastructure and reporting tools.

3. Setting up a neobank from scratch which product do you need with traditional bank infra?

The objective is to be a one-stop shop. Building digital will start with digital tools such as a CRM and the client onboarding digital form and good digital marketing tool to efficiently manage distribution channels. You must have a powerful CRM because this is key to collect future client data.

The rest is composable architecture. It is key that your neo bank service offers a lightning-speed digital account opening process. You should also look into payments processing solutions and KYC remediation. InvestGlass team is glad to share with you our knowledge.

4. Things to consider before opening a new style of financial services

If you don’t have sufficient funding to start a modern banking solution we suggest you look into growth hacking. Growth hacking is about finding Viral’s methods to increase client attraction. Very few banks are using growth hacking techniques as most of them prefer spending on Google ad words.

You can be fully digital but physical branches could also be a nice way to welcome your clients outside the digital world. As you will start a financial institution it is important to set yourself apart from traditional banks and legacy systems. You can compete on security with a better cloud computing solution. All neobanks have a mobile phone solution so it’s not there where you will make a difference. Focus on customers journey from their current account to trading account. Focus on consumer experience is new financial institutions will stand out from existing banks.

5. Get your company ready for a neobank mindset

Well, the first step is to contact us and we will share with you our best tips for building a digital bank and create innovative products. It is incredibly easy for a starter to kick off without a banking license. With pre-integrated key features of Investglass and he will find all caught banking systems, you are expecting to offer modern financial services. Based on your client’s preferences you might want to offer debit card, google pay bridge. Most probably you will be interested to connect with Foreign Exchange, Savings Accounts, Micro-Lending, or Cryptocurrency. You should start with basic functionalities and make sure that you collect user consent. Be aware that each new service, even if you externalize it with another fintech company it will be regulatory challenges in the mid-long term. Keep track of personal data and perhaps limit yourself to basic money transfers, new to credit customers, payments first. Set the right direction to your IT team. Make sure that they will integrate their roadmap with open fintech community.

As we studied several business models, we can guide you to find among traditional banking status quo which regulatory environment will be optimal for your own start-up! Niche market and underserved market segments will be key to grow your company at a faster pace.

How much money do you need for this neo banking services?

Digital banking is very accessible as you don’t need to create your own core banking platform to start, digital onboarding, KYC remediation… it will also depend on the business challenges you are looking to take. Digital banks must check banking api capabilities before they are building their experiences.

You might want to server your existing customers, then you don’t need a large-scale plan. You will focus on absolutely essential functions, with user-friendly mobile app. We suggest you to build your banking service one by one before you go for a full banking license.

InvestGlass team as experienced as a launchpad for your fintech experiences. We are used to work with multiple consumer segments from retail to private banking. We are connected to payment gateway solution and connect to a branded client portal. Nowadays more and more people are getting comfortable making online payments through Google Pay, Paytm, PhonePe, and more, now more than ever. 

InvestGlass is the perfect tool to start your neobank in weeks. The company has been helping organizations with their digital transformation for a decade, and they have already helped more than 25 banks around the world get started on building their own brands in this new market. If you’re ready for the 2021 challenge, then we can help you build your custom bank by leveraging our expertise and knowledge of how to innovate through technology so that you can remain competitive going forward. Contact us today

CRM for banking, neobank

6 Bank Marketing Strategies to Move You Past the Competition in 2022

In the future, banking will be more competitive than ever. You need to stay ahead of your competition with these 6 bank marketing strategies. These strategies work for traditional banks and neobanks too!

The key to success in any industry is a solid marketing strategy. In the banking sector, this means being creative and innovative without forgetting about security and trustworthiness. The following 6 strategies can help you move past the competition in 2021:  

  1. Demographic Targeting
  2. Technology adoption
  3. Digital Apps with your financial services
  4. Customer Value with new bank services
  5. Customer Outreach and lead generation
  6. Hyper Personalization

1. Target Different Demographics for each financial institution

Most banks are trying to attract limited audiences. Money is in the niche right? Would you be a new neobank or a broker with an umbrella license, I am sure that you are targeting specific audiences such as Gen Z, Millennials or Baby Boomers.

On the contrary, we are telling our banking clients to target not only one segment with one specific marketing that would feel like a no-go for another segment. Marketing results are indeed limited if you restrict yourself to one segments. However, with a customizable client portal as developed by InvestGlass and powered with a Swiss CRM, you can customize for your current customers or new prospects a financial brand that will look different for each segment. Target audience is obviously key but you should not restrict yourself. It’s the same if you write a blog post. The blog post can be interesting for millennials and not for baby boomers. Yes, this is true, but in reality, family members can be happy to share the post with other members. Here segments are sharing content.

One size doesn’t fit all. Your bank’s marketing strategies may have more success if you target local, specific, and smaller demographics. For example, if you can identify that your bank offers services specifically valuable to Gen Z students graduating high school and moving into university and college, you could create a strong marketing campaign geared at them. Similarly, if your financial services are better for middle-income baby boomers looking to start a savings program for retirement, you could create a strong marketing campaign on one specfic financial product. Even targeting a local audience will help you create more specific offerings and marketing so that you can more easily differentiate yourself from competitors.

2. Financial institutions must Adopt New Technologies

New technologies are found everywhere in consumer engagement is part of your added value. New technology can start from making sure that all marketing channels are properly covered with a marketing strategy.

Your colleagues have a LinkedIn account. What are they posting on their LinkedIn accounts? Do they have a corporate picture? Do they have a corporate background?

Creating marketing brochures and guidelines is the basis of marketing efforts for any financial institution. The digital marketing agency can help you to set the basic color, wording but you have to make sure that your colleagues effectively use them.

New customers will look into their bankers’ profiles. Therefore you might also suggest and create contacts for your bankers to push on social media. This is what we call influencer marketing or micro-influencer marketing. Each colleague can be part of an effective marketing strategy.

As you can notice here, we are not talking about chatbots or artificial intelligence. Obviously, artificial intelligence and chatbot can be used for frequently asked questions or FAQ. But financial institutions are not only about putting a robot for any type of service… it is about creating human relationships.

brown wooden blocks on white surface

3. Push Digital Apps and Financial Services

Today, an estimated 60% of the world population has an active social media account. New customers are less and less interested in going to physical banks and are looking for digital services. They are expecting to find all your financial products in a well-designed digital bank portal or BAAS portal.

On your digital bank portal, you can add third-party cookies to improve content targeting for each individual client. InvestGlass portal is not an IOS Android mobile app but a web portal running on a browser. There is nothing to download. We believe that this approach is the most affordable mobile banking approach. We will also suggest you use the portal for your prospective customers. Collecting their browsing data is a very important part of your digital marketing strategy improvements. Make sure your GDPR and data processing agreements are updated. GDPR is the European Union’s General Data Protection Regulation.

The digital marketing strategy will include text and video content. Younger generations will prefer video and engaging content. Wealthier or older customer bases will look for expert advice. Creating content is key nearly more important than buying google ads. Good content will position you at the top of search engines. SEO will encourage local businesses and local search so you should make sure your content presents a local flavor: ” Your bank accounts in your neighborhood…” SEO works by optimizing your site for the search engine that you want to rank for, whether it’s Google, Bing, Amazon or YouTube.

4. Return Value to Customers with special financial services

Many companies forget to return the favor to their customers. Through email marketing automation, you can share new service news but also offer specially developed products and target the right customers.

Happy customers should be presented on your social media ads and you should put them in the middle of marketing campaigns. Social media platforms have targeting tools so you will easily match your consumer’s testimonials with potential customers.

For financial institutions, dealing with mass retail customers, you should also watch for online reviews. Customers can share their opinion on Facebook, Linkedin, Twitter so make sure your marketing team prowls financial services testimonials here too. Consumers are your marketing troopers. They will replace some digital ads budget.

5. Focus on Customer Outreach

Customer outreach is crucial as a digital marketing strategy for banks, simply because many banks are focusing on digital and social media marketing. You could create workshops for trading, tutorials to explain tax wrappers, reinvent local banks meeting. You should create content that your consumers will keep and re-use. It’s not sales here, it’s about building relationships with existing customers with quality content.

6.   Integrate Marketing Strategy Personalization with Big Data

First, ask customers more questions. If you can not or don’t feel like asking the question – try the big data approach. With a simple automation algorithm, InvestGlass can recommend products to your existing customer base. All previous interactions are monitored. More data will give you more consumers’ preferences. Existing customer data is used to extrapolate potential customers’ expectations for financial services. Big data bundled to InvestGlass marketing reporting can teach you which marketing strategies work. You will not be guessing why a new account comes to your bank. It’s about target marketing. Customer loyalty is the last pillar of this strategy.

Use data to improve customer experience, focus on complaints and be more proactive about customer service. You will quickly see which channels are the preferred ones for communicating with your institution. The best thing you can do is focus on making digital interactions with customers as human as possible.

InvestGlass Artificial Intelligence and Signal Analysis

Recommendations to engage customers

  • Get an automatic reminder for securities or portfolio to rebalance.
  • Reveal sales pipeline with engagement level reminder. 
  • Create campaign with video marketing, content marketing for different customer segements
  • Test diverse digital channels
  • Test new ideas with new customers
  • Send direct mail carefully
  • Build a simple customer journey with new banking services presentation – like a video game… step by step. Give access to your online banking when customers are read!

Automate Sales Activities Trending Insights

  • Surface key opportunity insights including customer sentiment, competitor involvement, and overall prospect engagement to understand whether or not a deal is likely to close. 
  • Provide advisors and bankers with the best next action to take based on positive and negative signals to increase the likelihood of closing an opportunity.

Control risk with Smart data discovery

  • Find trends in unstructured data or trading – transaction logs. 
  • Calibrate flavour of the month – banking products
  • Identify trading patterns to automatically qualify clients’ suitability.
  • Explain the risk factor to foster a greater sense of connection with as many customers are possible

Marketing Campaign and monitoring

  • Empower your sales with hyper-targeted financial products.
  • Monitor churn and deals that don’t work to analyse blind spots in the sales/marketing process and correct inefficiencies.

A digital marketing agency will tell you – to put customer relationships first!

Effective marketing strategies will start with creating content. Most customers will be interested in your IDs. Customers are eager to learn more like anyone. New clients will be looking for micro-influencers. Those micro-influencers can just be anyone in your company.

Bank’s brand is built with the content you generate. Would you offer investment banks’ services, savings accounts, and interest rates comparison tools, it’s all about content and a capacity to target audiences however they are.

The financial services sector is like any other sector: modern marketing is all about the experience. You have to keep a local bank feeling within your digital tools to make sure that the customer experience will be different with you.

A good digital marketing strategy starts with the tools you use. InvestGlass is a complete Swiss software suite that can help you launch and manage your bank marketing online, from digital onboardingemail marketing to the client portal. The system does all the work for you so there’s no need to search through different platforms or spend hours trying to learn how something works. You get everything in one place and it’s easy to track what’s working and what isn’t – saving time, money, and frustration!

We look forward to helping you build brand awareness in the digital world and generate new leads for your bank.

CRM for banking, email marketing, neobank

white and blue magnetic card

Which license do you need to become a neobank?

For the past few years, there has been a major shift in how we bank. Technology is changing and so are our expectations of financial institutions. Many people now want to do more than just check their balance or make payments; they want to be able to save money, invest it, or use it with other services like mobile payments and bill pay. What does this mean for banks? It means that they need new strategies and new ways of doing business if they want to stay competitive in today’s market – including becoming neobanks themselves!

Which license do you need to become a neobank?

Do you want to be seen as a niche bank neobank is a new form of digital-only bank. Like traditional banks, they offer products and services like checking accounts with debit cards (or credit cards if the neobank offers them), savings accounts, loans, mortgages, investment management services and more.

The difference? Traditional brick-and-mortar banks resistant?

Most neobank have payment license thatdoes not qualify an institution to be designated as a “neobank.” Only institutions holding a credit institution license may call themselves a “bank” or a “neobank”… most banks are backed by the Temenos or Arkea infrastructures.

Today, the number of new neobanks entering the market each year is 5 times greater than it was in 2016. This revolution has largely been concentrated in Europe and Asia.

Players you know and might want be inspired from are in the UK (Starling Bank), France (Qonto), Finland (Holvi), Germany (N26), and Russia (Tinkoff).

The New Financial Services in Europe

In Europe, neobanks are leveraging the European Payment Services Directive PSD1, which allows new institutions to enter the financial services market with less stringent approvals. It is therfore easier to get a licence in France thanks to the National Competent Authorities—NCAs—such as the ACPR (France), in the United Kingdom with FCA, or in Germany with the BaFin. 

Which license do you need to become a neobank versus traditional banks?

The credit or banking license is not savings accounts

A credit or banking license allows a financial institution to accept customer deposits and issue credit using customer funds. Yes, we are very closed to a traditional bank. Banks accounts are opened now with virtual banks portal and such companies offer FOREX transactions, robo advisor, simple advice, and assistance in asset management, services related to securities such as socially responsible investment.

The subscription to services are made through a digital banking platform and this is a real competitor strategy facing existing banks.

Banking licenses are delivered by a competent authority. Applying to this type of license could be quite difficult for new digital bank. For example in Switzerland, building this type of new digital bank it’s a real challenge, higher than Cervin climbing and we strongly suggest you contact us before you start this process. Usually to build this type of bank you will need a greater capital requirement and very strong and well-known staff in Berne.

Building this type of traditional bank could take from 12 to 24 months at least depending on the jurisdiction you will select. Usually to build this type of bank you will also need a very strong banking services partner for custody and accounting.

Electronic Money Institution License

Another option is to obtain an electronic money license which will support financial payment services including the creation of IBANs and BIN sponsorship – credit card. Here an electronic money license allows the license to provide the same banking experience to customers for everyday payments. However electronic money license has some real limitations. So if you want to create conventional banks this is a dead-end.

An electronic money institution license is quite cost-effective and a very nice option for those looking to provide e-money services. This type of license is not meant to issue a credit or analyze credit risk. This type of license is not working for deposit insurance or traditional custody of clients’ funds. If you wish to custody funds then you should go with a partnership…

Neobanks help traditional banks… traditional banks help neobanks. Thank license can be obtained usually in less than 12 months and the legal fees also or less important. You should count around €150,000 for a traditional regulatory license application. The average cost of setting this type of virtual bank would cost you from one to €2 million.

The Payment Institution License  

Another option is to go for a payment institution license or PI this supports payment services and everything transactions to be carried out by card or direct debit on the direct system. Dissolution also provides cash with drawls and forest transactions. Thanks to DSP2 PSD2 pasty to dissolution is actually quite efficient in Europe. However, dissolution also has some limitations

PI does not allow long-term credit but you can use a specific loan repairable bridge with other financial institutions. In a way, this is a shortcut if you wish to have a full banking license. You have to carefully look into a partner bank’s program and see how your personal loans service can be hosted under their umbrella.

In contrast to EMI, PI can not take custody! You must work with a credit institution where the funds will be guaranteed up to €100,000 per client by the Deposit Guarantee and Resolution Fund in France – the FGDR – Fonds de Garantie des Dépôts et de Résolution.

You will go for a PI if you wish to become one day an established bank. The application process takes less than 12 months. Legal fees for this type of structure ranges from €50K to €150K. The price depends on the financial products, bank account activities you wish to provide. On average your challenger bank will have to be strong of €450,000 to €1.5 million to fund the whole operation.

The Payment service provider agent model

If you’re an Asian model you need to have your own type of light license and your help. Must startups and organizations appreciate going under the umbrella of another company. Start-ups operate under third-party until they achieved sufficient size to join challenge banks’ flock. They will have to follow a virtual banking policy as well as a partner virtual banking license policy. Those new banks operate in a white label debit card.

The umbrella bank is now a service provider and deposit accounts, currency changes, current accounts, budget management, online banking is license usually two days umbrella company. This umbrella company will make money with bips of the assets. under management or transaction flow. Very nice way to test the market before you actually start your own bank. Obviously, the main advantage is that you can start quickly. The biggest disadvantage is that you are dependent on a third-party system and control… so if you need to manage complex KYC and remediation. You should test carefully that the umbrella financial service providers will follow with your growth. Monthly maintenance fees can be a hurdle for this model.

Payment Neo neo licenses

Throughout the world now it is possible to benefit from more flexible regulation. You can build your own bank without the complex banking license through the start of pseudo banking licenses. This new type of license is opening the gates to new digital bank opportunities.

New version of Instaprint bank offers in reality financial services such as payments into lenient regulation. Payment licenses are often associated with regulatory send boxes which provide testing grounds for new digital banks.

How does InvestGlass help you with building your own banking services?

InvestGlass is a next-generation core CRM system that connects you to any fintech proving an API. We connect the CRM core to typical neobanks services and help companies partnering with the best fintech. We build robo advisor to create any type of onboarding for financial health, insurance, mortgage, MIFID, FinSa onboarding, and more.

InvestGlass is a cloud-native platform but we can also set up InvestGlass on your on-premise. We love creating new business models :

  • upgrading traditional banks
  • connecting banking services
  • money management app
  • connect to money transfers
  • create insurance companies
  • modernize physical bank branches
  • set peer to peer payments system
  • building full-fledged banking services platform
  • connecting to physical branches with new digital experiences
  • lifting automation, in providing customer relationship services automation
  • create mobile app

It’s now time to become a challenger bank! Find you niche and we will coordinate the rest to be over the top banks. Are you ready to launch your own neobank? Contact us!

neobank

person writing on white paper

Things to know before your start your digital bank

There are many benefits to starting a digital bank. One of the most prominent is that it will allow you to reach out to people who don’t have access to traditional banking services. However, this type of business does come with challenges and risks. In order for your digital bank to succeed, you need a lot more than just an idea—you also need knowledge!

TYPES OF DIGITAL BANKING SERVICES

Digital banking services can develop or you can leverage existing financial services

  • Opening accounts (debit/credit, savings);
  • Processing credit and debit cards;
  • Issuing virtual cards;
  • Personal, home equity, and business loans, etc.;
  • Payroll and deposit services;
  • Downloading electronic statements;
  • Checking the balance;
  • Paying the bills;
  • Transferring funds;
  • Updating personal information.

Then collect as much data possible on the following topics

  • Target your audience
  • Build your IT stack
  • Create your minimum viable product

What banking licence strategy do you need?

Proprietary: single sponsor and single provider. APIs are used as a bridge between developers and customers.

Licensing: single sponsor and many providers; provides a visible interface for consumers and developers.

Shared: many sponsors and many providers; multiple partners control the development process.

Joint venture: many sponsors and single provides; a shared interface that encourages collaboration among sponsors (e.g., fintech companies).

And also FinSA, MIFID, AML 5… and a powerful CRM.

OK – once your are ready you have to build your team and get started! We are glad to help you build your own digital bank or neo bank.

Let’s get started!

CRM for banking, neobank

Setting Up a Neobank From Scratch

The world is changing and so are the ways in which we build digital banks. The newest trend in banking services, neo banking, has been growing exponentially over the last few years. This article will walk you through some of the secrets to setting up a neo bank from scratch. We’ll cover everything from what type of software you need, to how you should price your services.

New start up will benefit from banking as a service plug and play approach.

1. What is a neobank versus a traditional banks?

Neo banks usually do not have a banking license, but you can partner with banks to offer services: personal loans, trading, mortgage, tax advsiory. Neo banks offer a better user experience. User experience is key to facilitate account opening. A financial institution can help you get a banking license umbrella in the country your company starts. These banks usually have a lot more features than neobanks: they provide saving accounts, checking account services, and loans. You might know – WeBank by Tencent, Yolt, and Moven are examples of neo banks.

2. Why setting up your own bank might be beneficial to you – do you need a banking license?

You don’t need a full baking license to start your neo bank. You can create your digital bank without your own banking license. Most challenger banks started with simple core banking systems and an umbrella license. An umbrella license is a license you are sharing with a traditional bank.

A banking license can be extremely expensive and long to obtain. Finding the right banking partner, or financial institution can be an easy way to start your business.

For card issuing, you’ll find in most countries local vendors that will produce prepaid cards and even offer a technology infrastructure and reporting tools.

3. Setting up a neobank from scratch which product do you need with traditional bank infra?

The objective is to be a one stop shop. Building digital will start with digital tools such as a CRM and the client onboarding digital form and good digital marketing tool to efficiently manage distribution channels. You must have a powerful CRM because this is key to collect future client data.

The rest is composable architecture. It is key that your neo bank service offers a lightning-speed digital account opening process. You should also look into payments processing solutions and KYC remediation. InvestGlass team is glad to share with you our knowledge.

4. Things to consider before opening a digital bank (security, fees, interest rates)

If you don’t have sufficient funding to start a modern banking solution we suggest you look into growth hacking. Growth hacking is about finding Viral’s methods to increase client attraction. Very few banks are using growth hacking techniques as most of them prefer spending on Google ad words.

You can be fully digital but physical branches could also be a nice way to welcome your clients outside the digital world. As you will start a financial institution it is important to set yourself apart from traditional banks and legacy systems. You can compete on security with a better cloud computing solution. All neobanks have a mobile phone solution so it’s not there where you will make a difference. Focus on customers journey from their current account to trading account. Focus on consumer experience is new financial institutions will stand out from existing banks.

5. Steps for opening an account with the neobank of your choice and getting started 

Well, the first step is to contact us and we will share with you our best tips for building a digital bank and create innovative products. It is incredibly easy for a starter to kick off without a banking license. With pre-integrated key features of Investglass and he will find all caught banking systems, you are expecting to offer modern financial services.

As we studied several business models, we can guide you to find among traditional banking status quo which regulatory environment will be optimal for your own start-up! Niche market and underserved market segments will be key to grow your company at a faster pace.

How much money do you need?

Digital banking is very accessible as you don’t need to create your own core banking platform to start, you don’t need a full banking license.

Are you ready? Let’s start today!

CRM for banking, neobank

3 x 3 rubiks cube

Building Your Future: What Bank Should You Start?

It’s never too late to start building your future, so it is important to get the right banking partner. In this article, we’ll explore some of the things you should consider before starting a bank account.

We distinguish four types of new banks.

Neo banks for saving account and more

Neo banks usually do not have a banking license, but partner with banks to offer services. Neobanksrequire customers to have an existing They offer a better user experience. User experience is key to facilitate account opening. A financial institution can apply to get a banking license in the country, and then offer different types of accounts. These banks usually have a lot more features than neobanks: they provide saving accounts, checking account services, and loans. You might know – WeBank by Tencent, Yolt, and Moven are examples of neo banks.

The new banks with the whole old bank service from saving money, savings accounts to trading

New banks have full banking licenses offering the same services as traditional banks. You will find include Monzo, N26, MyBank, Starling Bank, and Revolut. They are struggling to get independence from legacy frameworks and usually will partner with local tier-one banks when they need to open a new market. For example Revolut with Credit Suisse in Switzerland. Those banks will have to manage expectations of financial conduct authority and prudential regulation authority.

The “non bank account” Non-Banks

Those banks have no connections to traditional banking licenses. Instead, they will provide financial services by other means. This unique model allows the company to operate independently of existing banks.

They usually have strong IT to serve direct debits technology, they don’t offer independent advice or financial products.

The Beta banks – with savings account and more Beta Banks

Joint ventures and subsidiary banks that offer financial services through the parent’s license. Beta banks are often set up as a way to enter new markets. For examples AiBank (China’sCITIC Bank Corp and Baidu) and Simple (Bancorp and BBVA). Those banks have their own ecosystem connecting with their API new business models, new customer experience, and offer connections to third-party financial institutions.

CRM for banking, neobank

woman in white long sleeve shirt sitting beside boy in black shirt

5 Tips to Create a Neo Bank with a CRM

Neo banks are a new type of bank that is gaining traction in the marketplace. They offer more customer service and customization than traditional banks, which has led to rapid growth in recent years. However, many neo-banks struggle with retaining customers once they have signed up for an account. One of the main reasons for this is because these types of organizations don’t have a CRM system set up. Even if you’re not planning on launching your own neo bank anytime soon, there are some other benefits to having a CRM system like increased conversion rates and improved customer satisfaction levels!

In this blog post we will go over 5 tips for creating your very own neo bank with CRM. We’ll cover everything from selecting the best software.

1. Select a name for your bank

Most neo bank have a catchy name such as Atom, Monzo, Revolut or N26. The name you choose will have a significant impact on the way your bank is perceived, so it’s important to spend time brainstorming and deciding what best represents what your company stands for.

2. Choose an industry niche – like finance, tech, or food

As you are entering a very crowded financial services industry you have to find your own nice. An industry niche is a great way to stand out and identify with a specific group of customers.

Customer segmentation can be a great way to identify what niche your bank will fit into.

If you are looking for some inspiration, here is a list of the most successful neo banks in Europe:

– Atom Bank – Technology/Finance Niche

– Monzo – Tech Niche

– Revolut – Travel & Financial Services Niche

This is also important to create you first customer-based, simplifying your marketing automation and increase quickly your customer retention. Remember Facebook – it was only accessible from a US university email.

Customer relationship management software will help you to collect these data points. With your InvestGlass CRM you can build then your ideal customer journey to make sure that simple or complex onboarding will be accomplished smoothly.

3. Develop a logo and color scheme that reflects the company’s values and mission

Every bank has a logo and color scheme. It’s important to keep that in mind when developing your own brand or you will get lost in the market. Here is some inspiration:

– Deutsche Bank – Red, Black

– Monzo – Green & Blue

– AtomBank – Orange, Light Grey

We build with InvestGlass CRM a web based portal which is perfect for your banking CRM + connection to third party solution such as ONFIDO for face recognition and ID check, Polixis for name and AML check. AML stands for Anti-Money Laundering. We can give you precious recommendations to build your business rules and connect your self service portals to the best fintech. Connecting any fintech – to create a bank as a service approach.

blue and yellow abstract painting

4. Create an online presence for your neo bank with social media accounts, website, blog posts and more traditional emails

Writing blog and generating content is key visits to your website and downloads of your app.

An example of an online presence is a Facebook page. It’s important to keep in mind that you should always create content for your Facebook page as well, so make sure that it aligns with the tone and style of communication on your other social media accounts.

We suggest also building a sales pipeline management from the beginning collecting data. This is your contact center management system – CRM which customer profiles will facilitate marketing campaigns. Sending the right offer to the right customer at the right time will make your banking business processes smarter. With InvestGlass we built a solution to hyper – individualize your emails.

5. Find ways to engage customers in their banking experience with a cloud based CRM for neo banks

Engaging your customers with the right product is key as their attention span is little. Make your banking experience interactive and interesting for them – it will be both rewarding and result in more customers.

So, make sure you’ve asked yourself these questions before starting to create a new bank: How are my current products meeting customer needs? What is the best way to offer personalized service that talks to the individual consumer’s goals?

With InvestGlass digital forms, you can quickly build the most accurate digital onboarding to offer new experience and solutions: credit cards, travel, payment facilities, mortgages and real estate planning.

6. CRM to Offer customer service through email or phone 24/7

Your banking business as a neo bank is always open! 24/7 – storing customer information into your CRM is important to reduce frustration and speed up customer engagements. An efficient customer experience is particularly important with neo bank platform as the public is usually tech savvy. Customer journeys should also be pre-constructed in your CRM with a detailed knowledge base.

Each customer engagement is stored into a contact report to make sure that issues will deal with and the neo bank sales intelligence collected into the banking crm software.

Imagine you have a customer stuck into lending processes, you want to operate as quickly as possible to prevent any frustruation or worst bad press on social networks!

InvestGlass offers customer service tickets tools. You can also opt for a digital form – application to pull questions and create a client case. Self service has a limit… human interaction will be needed even for a neo bank. Human recommendations will also create goodwill for your neo bank brand.

Once collected all the data is processed into the CRM with a machine learning solution to improve your next interaction.

CRM for banking, neobank

person using black iPad

The SAAS Fintech Banking Platform

A SAAS Fintech Banking Platform is a software-as-a-service platform that provides banking services to businesses. These platforms are designed to make it easier for the people in your organization to process business transactions and send money, all while keeping your data secure. If you’re looking for one of these systems, here are five features that you should look out for:

1) Easy integration with other applications 2) Secure data storage 3) Customizable workflows 4) Completely mobile 5) Fully customizable reports

1 ­– Go digital it’s never too late

The global pandemic has tremendously impacted the speed of technology adoption. Indeed, lockdowns and remote work has made face-to-face encounters rarer. This trend forces executives and managers to, if not yet the case, accelerate digital adoption and offer digital products and services. In the wealth management industry, this implies a greater focus on digital advisory.

The global pandemic disrupted the means of communicating and satisfying clients. Besides, it also modified clients’ demands and approaches. The economic crisis and the ongoing uncertainty have led to increasing demand for financial advisory. InvestGlass provides the means for wealth managers to offer digital advising, be it via their workforce or artificial intelligence, and, thus, to develop a clear competitive advantage over laggards. With this pandemic – private banking – previously the most reluctant to move are running to catch up.

2 – Nurture all customer segments we mean ALL

Over the past years, the role of wealth managers, as well as their client targeting, has changed. From a pure wealth focus, wealth managers are now considering other customer segments. Pricing structures of wealth managers are shifting to include lower balance prospects. Indeed, in order to succeed and be able to provide their service to all market segments by reducing costs or improving efficiency, wealth managers need to partner with Artificial Intelligence advisory providers or similar fintech solutions and SAAS solutions.

Correspondingly, these previously underserved markets are surging as key interests for the future. Women’s and mass affluents’ presence in the financial markets is getting important and the trend can be assumed to grow. The increasing interest in underserved markets enhances the wealth managers’ need to reformulate their pricing strategies to convince these customer segments and partner with InvestGlass. We provide an all-in-one CRM as the cheapest solution on the market and enable offering your service to other segments.

3 – Trust me I am your banker!

Studying the clients’ expectations and behaviour, only 27% of Swiss individuals have worked with a financial advisor and over 50% manage their finances internally. This trend of behavior is a worrying aspect for wealth managers with the rise of new, more efficient, advisors such as Artificial Intelligence and Fin-tech companies.

The Swiss financial environment clearly showcases a duality: most use a bank but choose other means to manage their wealth. This opens a large array of opportunities to convince sceptics, yet, it also conveys long-term risks.

The challenge for wealth managers is that every decision of any individual is now demanding some kind of advice, ranging from buying a house to which insurance a client is selecting. This is where wealth managers need to evolve in the future, in order to gain market shares and fulfil clients’ expectations more thoroughly.

InvestGlass’s platform enables compliance with the need of the market by providing the means to make fast and efficient investment decisions. Satisfy your clients’ expectations starting today!

4 – Marketing hyper-personalization and All-in-one solution

Our customer-focused society has long supported mass customization. This trend is slowly but surely impacting financial services and wealth managers and has been exacerbated by the pandemic as the health crisis creates and enhances a plurality of needs within customer segments. Wealth managers are thus expected to connect with Artificial Intelligence and digital advisory fintech to tailor their offering to each customer. The two main focuses are going to be risk assessing firms, whose technology can interpret a client’s risk profile, and predictive analytics firms, which are expected to have extreme growth potential within the wealth management industry. Use InvestGlass CRM and tailor your offering to each customer with our customizable client portal.

Additionally, customers’ expectations have been changing and shifting towards all-in-one solutions. Indeed, clients and prospects aim at the most inclusive offer on the market. Therefore, wealth managers and financial companies, in general, need to include supplementary services or products in order to compete against inclusive competitors. Wealth managers, who can recognize this trend and act on it, will experience higher client satisfaction and retention. InvestGlass’s all-in-one solution, fin-tech ecosystem and open API embrace the trend.

5 – Get out with trendy thematics – even if you don’t share them. It’s the client first!

Over the last decades, before the pandemic became the main topic of discussion, the sustainability and sustainable investment trend were gaining ground. Global warming, child labor, and, more generally, ethical and environmental issues were increasingly important for investors. The pandemic accelerated the trend and wealth managers’ clients consider ESG (environmental, social, and corporate governance) criteria more closely than in the past. The focus is thus to understand clearly the values and needs of your clients.

Consequently, wealth managers are expected to strengthen their sustainability offerings and showcase priority in sustainable compliant products. InvestGlass provides the means and ends to integrate ESG criteria in your offering as well as an AI rebalancing advisor to match your investment strategy.

6 – Next-Gen Reporting when less is more – or maybe not

For any business, the tech-age our society is in has redefined competition. Firms, companies, stores, and individuals are fighting for awareness and attention. In order to foster engagement and attention from clients, processes have to be easy to use, interactive, and customer friendly. Therefore, technologies and innovations try to enhance clients’ attention by providing visualizable data, graphs, and images to engage and interact with them. Similar account aggregation makes a more friendly and comprehensive view of the clients’ assets.

Consequently, wealth managers can, via the InvestGlass module, deal with clients’ expectations to implement wealth tech which encompasses gamification in forecasting strategies and interaction in client wealth reporting.

7 – Instant Data is not flying cars

Data is the most important source of information for any sales manager. For wealth managers, it is imperative to know your customer and, thus, to base your advice and product propositions on data. The more data is gathered, the better tailored your service or product will be to the client and higher will be his/her satisfaction. As the way to gather such data is limited, advisors and wealth managers are now aiming for an alternative source of information such as behavioral data or localization data.  Additionally, machine learning is an important asset when pursuing predictive analytics and alternative data collection. E.g., Artificial Intelligence can scan the web and extract complex data on sentiments and social network critical trends.

Hence, it is clear that wealth managers will have to develop competencies and capabilities to deal with alternative data and to support machine learning processes, capabilities inherent to InvestGlass solution.

7 Benefits Of Digital Banking In 2021  > Key Takeaways

Digitalization: Digital transformation has been accelerated by the pandemic. It becomes a crucial point for wealth managers and the financial industry, in general, to innovate and embrace the revolution.

Nurture all segments: the range of potential customers for wealth managers is rapidly growing. The industry must understand this trend and change its offering to include lower balance prospects

Financial Trust: Individuals are lacking trust and interest in financial advisory. This leaves room for opportunities and threats within the industry.

Hyper-personalization and all-in-one solution: the mass-customization trend is also affecting customers’ expectations in the retail banking industry. Products should be customizable and integrate all relevant services via an ecosystem and integration.

Values and Sustainable investment: Competition and matching clients’ needs is a key focus during uncertain times. Recognizing the ESG trend and values within customer segments is the next focal point.

Next-Gen reporting: Interact with your clients. Clients are demanding gamification of performance reporting in order to increase their engagement with your product.

Discuss with InvestGlass team today.

baas, Digital onboarding, neobank

red and white sail boat on water near city buildings during daytime

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

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