Banking Fintech

FinovateEurope 2016 review – retail banking

FinovateEurope 2016, retail banking. Image: Unsplash CC0 License
Written by BankNXT

Resham Karira and Daoud Fakhri review retail banking technology as seen at FinovateEurope 2016 in London.

This edition of Verdict Financial’s FinTrack showcases the best and brightest innovations revealed at day one of FinovateEurope 2016, Europe’s best new fintech conference. Each retail banking innovation is assessed and rated on key criteria.

SizeUp serves SMEs with hyper-local business intelligence

Resham Karira takes a look at SizeUp‘s hyper-local business intelligence offering that was demoed at FinovateEurope 2016.

SizeUp logoSizeUp provides SMEs with business intelligence and market research through big data analytics. The business customers of the banks that license SizeUp services are empowered to access high-quality competitive data with just an internet connection and a browser. By using SizeUp’s online services, financial institutions can help create value for and engagement with their small business customers.

Is it original?

SizeUp empowers small business customers to make smarter decisions by better understanding themselves and their competitive landscape through big data insight.

Is it long-lasting?

SizeUp is a viable option for financial institutions because it helps them deliver value to their SME customers through customized market analysis, which SMEs couldn’t previously access. There is a need for tools that can cater to this segment.

Is it operationally game-changing for the provider?

With SizeUp, financial institutions can provide their customers with business insight through their own websites. Moreover, by helping small businesses grow, banks can improve their cross-sales, lower costs, boost share of wallet, and drive higher customer satisfaction and loyalty. Wells Fargo and Deutsche Bank are already offering the tool.

Will it significantly improve the user experience?

SizeUp caters to SMEs’ needs by providing real-time market analysis based on location or zip code. It reveals business threats and opportunities by allowing SMEs to compare their performance to that of their competitors, find customers and suppliers, and discover the best locations in which to advertise.

Is it market-changing?

Small businesses are typically underserved by banks and many cannot afford business consulting or assistance services. With SizeUp, these customers can enhance their personal judgment with powerful, quantitative insight.

Total score5/5

Avoka eliminates pain from product application

Daoud Fakhri evaluates Avoka’s Transaction Effort Score algorithm presented at FinovateEurope 2016.

Avoka logoAvoka has introduced a proprietary algorithm – the Transaction Effort Score (TES) – for measuring and benchmarking user-friendliness of the online product application process. TES measures factors such as the number of questions asked, the amount of text entry needed, and the ease of retrieving required information. Banks can identify where their processes are prompting abandonment and rate the effect of various improvements.

Is it original?

TES offers the most detailed quantitative analysis of the onboarding process currently available, analyzing a wide array of data points.

Is it long-lasting?

Customer acquisition will always be a key priority for banks. Solutions such as TES will therefore remain in high demand as providers seek to outperform their rivals’ conversion rates.

Is it operationally game-changing for the provider?

Abandonment during onboarding remains a problem for banks. TES identifies precisely where the pain points are and models the impact of possible improvements. Banks can thus efficiently target their resources to maximize conversion rates and reduce the costs associated with customer acquisition.

Will it significantly improve the user experience?

Consumers often find online application a time-consuming chore and frequently abandon the process before completion. TES incentivizes banks to remove friction from the process, thus making it easier and faster for consumers.

Is it market-changing?

Banks often struggle to identify precisely where their application processes are letting them down, but TES identifies these areas, making it easier for banks to create a more user-friendly experience that will be of demonstrable benefit to consumers.

Total score5/5

Asseco’s CBP introduces ‘mini app’ banking

Daoud Fakhri reviews Asseco’s Customer Banking Platform.

Asseco CBPAsseco’s Customer Banking Platform (CBP) is an integrated online and mobile banking platform where functionality is provided via ‘mini apps’. Each mini app deals with a specific task related to current accounts, savings, payments and transfers, insurance, and communications. Banks can design their own apps for use with CBP or use external developers.

Is it original?

Other banking platforms, such as Matrix from Five Degrees, already allow banks to host third-party services, although CBP’s use of customizable mini apps offers an alternative means of collaborating with external providers.

Is it long-lasting?

Banks are increasingly partnering with fintech specialists to develop innovative services, and CBP gives banks another option for tapping into the growing trend for open banking.

Is it operationally game-changing for the provider?

Banks can upgrade their apps without having to take their systems offline, and CBP allows banks to easily integrate offerings from fintech specialists and other third parties, thus speeding up the product development cycle.

Will it significantly improve the user experience?

Consumers can potentially access a wide variety of apps and can customize their devices to only show the apps they use. CBP thus provides users with a personalized banking experience.

Is it market-changing?

CBP gives banks an easier way to partner with outside developers, and consumers will benefit from wider access to new banking services, from which they can pick and choose what they want to use.

Total score4/5

IDscan delivers immediate document authentication

Resham Karira takes a closer look at IDscan‘s document authentication solution recently demoed at FinovateEurope 2016.

IDscan Biometrics logoIDscan provides validation on document authentication, fake ID detection, ID checking, and passport and driving license OCR. IDscan uses advanced mathematical algorithms and color wave-length technology, together with an encyclopedic knowledge of these documented IDs, to automatically process images captured by passport scanners.

Is it original?

The concept of using artificial-intelligence-led identity document scanning isn’t new. Companies such as Jumio and IDology already have a presence in this space.

Is it long-lasting?

It’s a viable option for financial institutions. By using IDscan’s advanced technology, banks can authenticate documents and can get real-time access to consumers’ details, thus letting them respond immediately to customers’ requests.

Is it operationally game-changing for the provider?

IDscan significantly reduces the time needed by banks to authenticate documents. When used in the crucial customer-facing aspect of customer onboarding, IDscan’s technology brings automation, speed, and efficiency. As a result, productivity is significantly enhanced.

Will it significantly improve the user experience?

It caters to the consumer need for personal authentication and identity protection. IDscan users are not required to select the issuing country, nor define the type of ID; IDscan does this automatically, instantly providing a simple and speedy ID authentication service for consumers.

Is it market-changing?

IDscan doesn’t pose a threat to other providers and isn’t intended to significantly alter the market dynamics. It will work within the existing banking model, making it easier for consumers to engage with.

Total score3/5

Twino eliminates default risk from marketplace lending

Sean Harrison looks into Twino‘s cross-border marketplace lending platform, recently demoed at FinovateEurope 2016.

Twino websiteTwino is a cross-border marketplace lending platform that offers investors unrivaled security and convenience. Loans are issued to borrowers by Twino in six countries: Latvia, Russia, Czech Republic, Georgia, Denmark, and Poland. It guarantees to buy back loans that are delinquent for more than 30 days, plus interest. Returns on investment are very competitive compared with domestic marketplace lending in the UK and the US.

Is it original?

The elimination of default risk is a substantial improvement on what existing providers offer. The buy-back guarantee has enabled Twino to directly compete with term deposits, but with much higher returns.

Is it long-lasting?

Marketplace lending has grown exponentially over the last decade. This has been stimulated by a growing number of yield-hungry investors and savers, and a retrenchment in lending by mainstream financial institutions.

Is it operationally game-changing for the provider?

Twino is open to international investors and as such does pose a risk to low-return term deposits, particularly markets where consumers are becoming increasingly comfortable with marketplace lending.

Will it significantly improve the user experience?

Removing the risk of default drastically reduces the amount of due diligence and analysis that investors have to perform when lending on other platforms.

Is it market-changing?

Twino’s guaranteed buy-back of delinquent loans and the high rates of return on loans will accelerate the growth of marketplace lending to the detriment of term deposits. The convenience and security of lending through Twino’s platform will also make consumers more comfortable with cross-border marketplace lending.

Total score5/5

Lendstar combines social media with banking

Sean Harrison evaluates Lendstar‘s white label social banking app recently demoed at FinovateEurope 2016.

Lendstar app in use. Image: LendstarLendstar is a white-label social banking app that makes conducting financial transactions with friends and family easy. Users set up groups through the app by sending invitations via SMS messaging. It has a simple interface divided into five main functions: send, collect, remind, borrow, and split. Users are able to communicate in a similar way to social media, by chatting and sending pictures to group members.

Is it original?

Lendstar was the first to launch its social banking platform. Payfriendz and ebankIT have subsequently launched similar platforms.

Is it long-lasting?

Millennials are highly engaged in social media and very comfortable using digital devices to organize their lives. Lendstar is responding to this growing trend by enabling consumers to conduct financial transactions in the same way as they would interactions through social media.

Is it operationally game-changing for the provider?

Lendstar has the potential to be an attractive new revenue stream for banks, especially for acquiring younger consumers. Customer acquisition strategies and customer services will have to change to accommodate this new way of conducting financial transactions, however.

Will it significantly improve the user experience?

Presently, consumers would have to use SMS, phone, WhatsApp, and online or mobile banking to achieve what Lendstar’s app provides.

Is it market-changing?

For millennials and younger consumers, Lendstar’s social banking app has the potential to become the status quo of their financial service requirements. It represents a natural extension of their social lives. Banks that have a strong digital customer service operation will be able to harness the full benefits of Lendstar.

Total score5/5

North Side offers conversational interface to financial services

Resham Karira reviews North Side’s VerbalAccess software, recently demoed at FinovateEurope 2016.

North Side VerbalAccess.North Side’s VerbalAccess software is a cloud-based interface that enables consumers to access banking and financial services through voice or text messaging. It relies on natural language technology whereby customers can ask questions or conduct transactions in English using their own words and get precise answers.

Is it original?

A key feature distinguishing North Side’s technology from an intelligent personal assistant based on machine learning, such as Apple’s Siri or Google Now, is its ability to clarify ambiguous input and handle paraphrases using a deterministic, rule-based approach.

Is it long-lasting?

VerbalAccess enables a new experience, empowering self-service through voice or text messaging. Voice-based banking is intended to work within the existing banking model, making it easier for users to stay connected with their bank anytime and anywhere.

Is it operationally game-changing for the provider?

By deflecting calls from live agents and automatically helping consumers find the products that are best suited to their needs, VerbalAccess will increase profitability, engagement, and customer satisfaction, as well as reduce waiting time.

Will it significantly improve the user experience?

VerbalAccess is simple to use and consumers will benefit from an enhanced level of service. Their questions will be answered quickly and their transactions executed accurately.

Is it market-changing?

VerbalAccess is the first to engage customers in conversation, and is a step further towards offering customers personalized, round-the-clock, convenient access to banking services.

Total score5/5

ITSector’s FlowCredit is a fully integrated credit solution

Daoud Fakhri looks into ITSector’s integrated POS platform FlowCredit, recently demoed at FinovateEurope 2016.

FlowCredit Consumer SegmentFlowCredit from ITSector is an integrated point-of-sale finance solution for consumers, banks, and retailers. Consumers can use a dedicated mobile app to access details and offers for in-store finance via beacons, augmented reality, and QR codes. FlowCredit covers the entire process of credit provision, including calculation, application, scoring, approval, and contracting.

Is it original?

FlowCredit is a more holistic product than others on the market, being the only credit solution to integrate so many user- and provider-oriented features in one package.

Is it long-lasting?

The global market for credit is large and growing, and the continuing expansion in the number of consumers with the desire and income to purchase consumer goods ensures FlowCredit (and similar products) will be in high demand.

Is it operationally game-changing for the provider?

The use of FlowCredit will reduce the costs associated with loan distribution. The greater ease with which consumers can access credit will also increase demand and create stronger relationships between lenders and consumers.

Will it significantly improve the user experience?

The use of customer-centric features such as beacons and augmented reality, together with the increased speed and reduced effort involved with credit arrangement, will make life easier for consumers.

Is it market-changing?

FlowCredit has the potential to make the provision of consumer credit a far more frictionless experience for consumers, and cut costs for providers. Therefore, the markets for retail finance will be expanded on the demand and supply sides.

Total score5/5

eWise gives back power to consumers

Sean Harrison evaluates eWise’s white-label personal financial management platform recently demoed at FinovateEurope 2016.

eWise AEGISeWise AEGIS is a white-label personal financial management (PFM) platform that performs account aggregation on the consumer’s device using eWise’s proprietary Personal Data Vault. No login details are transferred to a third party. Consumers are able to control their privacy on an individual account basis. Banks benefit from a richer picture of their customers’ behavior while avoiding uncomfortable levels of intrusion and monitoring.

Is it original?

PFM tools and account aggregation aren’t new. However, eWise AEGIS is an original and significant improvement to existing PFM platforms.

Is it long-lasting?

Consumers’ financial affairs are becoming ever more complicated as they seek competitive products from a range of different providers. eWise AEGIS makes personal financial management efficient, safer, and beneficial for the consumer.

Is it operationally game-changing for the provider?

eWise AEGIS will force providers to work harder for consumers’ financial data. However, providers that gain the trust of their customers will be in an advantageous position and will be able to price their products more competitively. It will amplify the importance of customer relationship management for providers.

Will it significantly improve the user experience?

eWise AEGIS goes beyond visually attractive graphs and charts. It offers consumers peace of mind that their data is safe, and provides consumers with the power to monetize their personal financial data.

Is it market-changing?

eWise empowers providers and consumers. It also goes some way to address consumers’ concerns over data protection and privacy, which surveys show is a growing concern.

Total score5/5

– This article is collated with kind permission from Verdict Financial. Some minor changes have been made to reflect BankNXT style considerations. Read more here. Main image: Unsplash CC0 License

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BankNXT

BankNXT offers a showcase of events and reviews for a number of industries, particularly financial services and financial technology.

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