Fintegration: Understanding the Benefits of FinTech and Banking
If we take a look at how consumer behaviors are evolving and consider the extent to which technology continues to advance around us, we see a revolution in bill payment that has redefined the way people bank. This shift has inevitably influenced corporate banking as well, pushing businesses in the direction of more modern accounts payable solutions.
While some companies still feel more comfortable with a crisp paper check in hand, more and more businesses – especially those hiring tech-savvy millennials – are demanding better, faster and more secure AP automation from their banks. The current landscape of the payments industry tells the story and is illustrated by rapidly shifting pay systems that support electronic accounts payable options.
The technology is here and is advancing quickly. Corporate customers are becoming more educated on the advantages of AP automation and are starting to look for higher-level solutions that offer lightning speed functionality. The risk of banks becoming obsolete to their corporate customers is real if these payment solutions aren’t adopted and delivered. Some banks have already reported reduced payments market share and profits. FinTech is addressing these issues along with the demand for AP automation with white-label corporate payment solutions for banks.
Recognizing that the possibilities are there and giving corporate customers what they want, which is the best of all worlds, means bringing FinTech and banks together. It doesn’t have to be one or the other, it’s a strategic and streamlined partnership called fintegration.
So, what does fintegration mean for banks?
Simply stated, it means client retention and increased revenue. The addition of innovative corporate payment solutions to a bank’s portfolio provides a competitive edge and a modern solution that keeps corporate customers loyal in addition to increasing the ease, and frequency of their spending.
Solutions like CSI’s globalVCard paysystems leverage single-use virtual credit card numbers with little to no capital investment required. In addition, vendor acceptance is three times higher than other card programs and the average transaction sizes are ten times larger than what we see with traditional purchasing cards.
That’s great news for banks that want to grow their commercial card spend.
Not only that, companies who are given the right AP automation tools can reduce their operating costs, simplify account reconciliation, reduce the risk of fraud and optimize their cash flow.
It’s a win-win scenario.
How does CSI Enterprises partner with banks?
At CSI, there are two partnership models that give banks exactly the flexibility they need for leveraging globalVCard solutions.
- The Integration Model – The bank gains a fully integrated payables solution issued through their own BIN. It’s all about keeping the bank’s branding on the front lines. Meanwhile, behind the scenes, gobalVCard steps in as the program manager providing the necessary training and implementation tools to get the bank’s team fully functional.
- The Referral Model – If the bank doesn’t have the team or financial resources available to launch their own branded solution, they can refer their commercial client base to CSI’s globalVCard solutions and CSI will manage the program end-to-end.
Regardless of which partnership is selected, CSI knows electronic AP solutions and the demands of commercial clients. With a dedicated account management team and AP certified professionals, CSI has a reputation for getting banks successfully on board with fully integrated globalVCard solutions and also getting vendors enrolled – by more than 3x the industry average – in as little as two weeks.
FinTechs and banks are starting to realize the many benefits of working together. The digital revolution has already arrived in the banking sector. Together, FinTech and banks have everything they need to deliver innovative solutions with a superior customer experience.