New Age in Banking Whitepaper: The Era of Tech Change Has Arrived
Explore what the future of banking has in store technology-wise.
The banking sector is in peril. By 2029, Millennial and Gen Z consumers will hold the largest share of disposable income. Meanwhile, the unbanked (and underbanked) demographics present a multi-billion-dollar opportunity.
But despite the burgeoning digitalization in banking, too few players are ready to cater to these rising and highly vocal groups.
To help you prepare for the future of digital banking, we did some discrete listening and collected Voice of Customer data along with social and economic insights that you can use to shape your digital transformation strategy.
From this look into future technology in banking, you’ll learn:
- How to conquer mobile, the primary new business channel
- Why you should prioritize your investment in the future banking technology triumvirate: AI, big data, and ML
- What the three core digital banking business models are and what opportunities they offer
Your Customer-Centered Banking Blueprint
The global financial landscape is shifting towards banking as a service, mainly thanks to the preference of tech-savvy generations for seamless, simple, and comprehensive platform banking.
Understanding the unique needs and aspirations of your target audiences — the notorious Millennials, often misrepresented Gen Zs, and largely ignored unbanked consumers — and aligning your product development roadmap to these demographics is the key to staying competitive in 2025–2030.
In preparing this white paper, we’ve done some of the heavy lifting for you and have formulated three viable business models to focus on.
Credit Card Business Model for Digital Banks
Rapidly acquire users with a credit offering. Fast time to market (under 7 months). Favorable regulatory landscape.
Key opportunities:
- Attract consumers (youth, unbanked, and underbanked) ignored by traditional providers. Minimize risks with a data-driven credit approval process.
- Boost customer loyalty by using early feedback to diversify your product portfolio.
- Easily compete with incumbent banks in terms of pricing and overall customer experience.
Prepaid Card Business Model
Offer a no-fee debit card paired with a basic bank account to attract a critical mass of early users. Most FinTech unicorns have chosen this route.
Key opportunities:
- Win over Millennial and unbanked customers by offering standard financial operations with low to no fees.
- Seamlessly tap into the existing digital banking ecosystem to launch new products and services.
- Collect instant feedback from early customers to refine your product development framework and prioritize tech investments.
FinTech Bank Business Model
Launch with a banking license. The cost and challenges of obtaining one will be majorly offset by higher product development capacity, lower operational costs, and bigger profit margins.
Key opportunities:
- Orchestrate rapid market and cross-border expansion, especially in the EU.
- Offer competitive prices compared to incumbent banks and other digital players that rely on third parties for financial services.
- Launch innovative offerings and products to poach customers from other financial services providers.
- Build a strong core and scale your business using the marketplace banking model.
Prioritize Your Investments in New Technologies
Choosing the right BaaS business model is only part of the deal. Figuring out the right technical strategy is another. Or is it?
In the final section of our white paper, we provide a five-step product development framework for building a digital bank. Skip the buzzwords and get to know which tech solutions can give your bank an edge. Enjoy a quick preview below!
