Asa notes collaborative banking, data sovereignty and financial empowerment as top trends
Asa connects financial institutions with customer facing fintechs in a secure, compliant and easy to implement marketplace. As the industry continues to face expanding competition and pressure to keep up with new technologies, Asa predicts collaborative banking, self-sovereign identities and financial empowerment to be significant trends to watch for the rest of the year.
The rise of collaborative banking. As new competitors emerge at a rapid pace and consumers demand more functionality than ever before, the industry is struggling with the best path forward. Some have turned to banking as a service and others to open banking, however, while both options solve some pain points, they also cause friction; banking as a service requires fintechs to jump through regulatory hoops and open banking pits banks and fintechs against each other in competition for customers’ finances. Instead, many are considering a new route, one that’s mutually beneficial to all parties involved – collaborative banking.
Collaborative banking is a movement that allows financial institutions and fintechs to finally join forces, sharing revenue and business opportunities. In a collaborative banking model, institutions connect with customer-facing fintechs in a secure, compliant marketplace. The digital rails connecting the banks and credit unions to the marketplace anonymize and tokenize all customer data, removing the regulatory risk traditionally associated with bank-fintech partnership. Collaborative banking allows the financial institution to put the customer in control, enabling unprecedented innovation based on customer choice.
A move toward self-sovereign identities. As more consumers embrace digital advancements such as cryptocurrencies and Web3, there will be an uptick in interest around self-sovereign digital identities. There is a need for greater control in financial services, granting consumers stronger authority over who accesses their data and under which conditions. Those institutions and fintechs that embrace secure consumer choice will pave the path forward. Expect consumers to lean into self-sovereign identifies moving forward, taking ownership of their data in new ways.
The financial empowerment movement. Just as there is demand for more consumer control when it comes to financial services data, there is also a growing insistence for greater flexibility and choice. More than ever, customers need easier, quicker access to a wider range of financial education and wellness tools and resources. A ‘one-size-fits-all’ approach will no longer cut it.
Too often, consumers and businesses are forced to choose between the modern technology they crave and the local institution they know and trust. Those banks and credit unions that fail to determine how to allow simpler, risk free access to new technology and services risk losing revenue, wallet position and loyalty. Those that enable and encourage customer choice will be well positioned to compete.
Landon Glenn, CEO and co-founder of Asa, commented, “We are seeing the industry grappling with how to better, more effectively put the customer experience at the center. Until now, there simply hasn’t been a good way to personalize banking experiences, delivering the choice and control customers increasingly expect. Collaborative banking presents a way for financial institutions and fintechs to work together in a mutually beneficial way, all for the good of the end customer. We firmly believe this model is the future of financial services.”