What is Digital-Only Banking and What Does it Mean For Businesses?

The types of changes we’re seeing in financial technology daily are crucial for businesses to pay attention to. New trends in FinTech will influence the changes that occur in businesses of all sizes, especially when it comes to the customer experience. One of the bigger transformations we’ve seen recently is the shift to digital-only banking. Now, let’s be clear that digital-only banking is not limited to sending that E-Transfer to your friends and family.  

The concept of digital banking refers to the use of digital technologies, such as the internet and mobile apps, to access and manage financial services and products. On the other hand, digital-only banking (also known as online banking or internet banking) refers to a type of banking that is solely conducted through digital channels and does not have a location for you to visit.

What’s in it for consumers? 

Customers of a digital-only bank can perform all of their banking activities online or through a mobile app, including checking account balances, paying bills, transferring money, and managing their finances. Banks that are digital-only often offer competitive interest rates and lower fees compared to traditional banks, since they do not have the overhead costs associated with maintaining physical branches.

Some examples of digital-only banks include Ally Bank, Chime, and Capital One 360. These banks offer a range of products and services, including checking and savings accounts, credit cards, and investment options, all of which can be accessed and managed online or through a mobile app.

Risks

We have to keep in mind that while digital-only banking has become increasingly popular in recent years, it is not without its drawbacks. Many customers may prefer the convenience of visiting a branch for in-person service or to deposit physical checks, for example. Additionally, digital-only banks may not offer the same level of customer service or support as traditional banks, and there may be risks associated with conducting these transactions online.

How can they be resolved?

Despite these drawbacks, the shift towards digital-only banking is likely to continue, as more and more consumers become comfortable with using digital technologies to manage their finances. Businesses that can adapt to this trend and offer digital services will be setting themselves up for success long term. But why is that?

Trends

Companies embracing the hottest trends are certain to gain attention from consumers in today's market. In addition to digital-only banking, some of the biggest trends in FinTech include artificial intelligence and machine learning which improve financial services and products, along with the growth of mobile payments and the previous rise of cryptocurrency.

Artificial intelligence and machine learning are consistently being used to analyze financial data and make predictions about market trends, as well as automate tasks such as fraud detection and risk assessment. 

What’s interesting is that mobile payments, which allow consumers to make payments using their smartphones, are becoming more popular as a convenient and secure alternative to traditional methods of payment. Additionally, cryptocurrency, which is an asset that uses cryptography (solving codes) for secure transactions, is another area that gained a significant following in recent years. While cryptocurrency may have lost its glowing reputation, mobile payments are still important to watch for, even with the crypto dip.

The Takeaway

The FinTech industry is constantly evolving and businesses need to be aware of these changes to stay competitive. Digital-only banking, which allows consumers to access and manage their financial services and products through digital channels, is one of the major trends in FinTech. While it offers competitive interest rates and lower fees compared to traditional banks, it may not provide the same level of customer service or support and there may be risks associated with conducting financial transactions online. 

However, the shift towards digital-only banking is likely to continue as more consumers become comfortable with using digital technologies to manage their finances. Businesses need to stay up-to-date on these trends and adapt to them to succeed in the future.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

How Insurance Companies Will Benefit From Outsourcing Software Development

In recent years, the insurance industry has undergone a significant transformation with the rise of digital technologies and the growing importance of data analytics. As a result, insurance companies are increasingly turning to software development to help them stay competitive and meet the changing needs of their customers.

The industry is changing and it is not unfamiliar to challenges with technology. At the moment, 5 of the most pressing technological issues insurance companies face are: 

• Cybersecurity threats: Insurance companies handle sensitive customer information, such as personal data and financial details, and they are at risk of cyber attacks from hackers and other malicious actors.

• Data privacy concerns: Insurance companies are subject to strict regulations regarding the collection, use, and storage of customer data, and they must ensure that they are complying with these regulations to avoid fines and other penalties.

• Legacy systems: Many insurance companies have outdated technology systems and processes in place, which can make it difficult to integrate new technologies and keep pace with industry changes.

• Integration challenges: Insurance companies often have to work with a wide range of external partners, such as brokers, agents, and service providers, and integrating their systems and processes can be complex and time-consuming.

• Talent shortages: The insurance industry is facing a shortage of skilled technology professionals, which can make it difficult for companies to find and retain the talent they need to support their technology initiatives.

As an insurance firm, these issues may inhibit your daily operations and the confidence surrounding your product. Luckily, all these issues can be solved with the right software solution which is why we’ve seen an uprise in investments with things like InsurTech. But you’re not here to learn about the stock market; you’re here because you want to learn how custom software can be the remedy for an insurance company. With that said, pay attention to these three common reasons insurance companies choose to outsource custom software development: 

Talent Acquisition

The first reason why insurance companies would need to outsource software development is to access the expertise and skills required to develop sophisticated and innovative software solutions. Insurance companies often lack the in-house capabilities and resources to develop complex software systems, and outsourcing can help them tap into the expertise of experienced software development teams.

Cost Reduction and Increased Efficiency

Another reason why insurance companies outsource software development is to reduce costs and increase efficiency. Developing software in-house can be expensive and time-consuming, especially for companies that do not have a dedicated software development team. Outsourcing can help insurance companies access the latest technologies and expertise at a lower cost, allowing them to focus on their core business and achieve greater efficiency.

Remain At The Top of The Industry

The third reason why insurance companies need to outsource software development is to remain competitive in a rapidly changing market. The insurance industry is undergoing a digital transformation, and companies that do not keep up with the latest technologies and trends are at risk of losing market share. By outsourcing software development, insurance companies can stay ahead of the curve and develop innovative solutions that help them meet the evolving needs of their customers.

The Takeaway

In conclusion, outsourcing software development is essential for insurance companies that want to remain competitive and thrive in the digital age. By accessing the expertise and skills of experienced software development teams, insurance companies can develop sophisticated and innovative solutions that help them reduce costs, increase efficiency, and remain competitive.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

6 Reasons Why North American FinTechs Will Benefit From API Development

API development is essential for any financial technology (fintech) company operating in North America. APIs, or application programming interfaces, allow different software systems to communicate and exchange data with one another. 

In the fintech industry, APIs are crucial for enabling seamless and secure transactions, as well as for providing access to a wide range of financial services and products.

One of the main reasons why a North American fintech needs API development is to stay competitive in an increasingly crowded market. The fintech industry is growing rapidly, with new companies emerging all the time.

To keep up with the competition, a fintech company must be able to offer its customers something their competitors can’t, and APIs are a key part of making this possible. API development can offer a range of benefits to a FinTech from a business standpoint. 

Three quick ones to note include:

1. Improved customer experience: By enabling seamless and secure data transfer between the FinTech's systems and its customers' devices, API development can help improve the customer experience and foster customer loyalty.

2. Competitive advantage: API development can help a FinTech gain a competitive advantage by allowing it to easily integrate with other financial services and offer its customers a wider range of services such as banking, investment, payment processing, personal finance management, lending services, and much more.

3. Reduced operational costs: API development can help automate many of a FinTech's processes, enabling it to reduce its operational costs and scale more easily.

These deliverables are likely the most obvious to anyone who’s undergone API integration before. However, FinTech startups specifically will want to know how and why developing an API will help them in the long run. 

API development can offer a range of benefits to a FinTech startup, especially in terms of its longevity. Some of the key ways in which API development can help a startup include:

1. Improved connectivity and integration: One of the main benefits of API development for fintech companies in North America is the ability to improve connectivity and integration. By using APIs, fintech companies can easily connect and integrate their systems with other financial services and applications, providing a seamless experience for their customers.

2. Access to a wider range of customers and partners: Another advantage of API development for fintech companies in North America is the ability to access a wider range of customers and partners. By using APIs, fintech companies can open up their products and services to a wider audience, and can also easily integrate with other financial services and applications to offer a more comprehensive suite of products and services.

3. Increased speed and agility: Finally, API development can also help fintech companies in North America to be more agile and responsive to changing market conditions. By using APIs, fintech companies can quickly and easily adapt to new technologies and customer needs, allowing them to stay competitive and remain at the forefront of the industry.

The Takeaway

API development is essential for fintech companies operating in North America. APIs enable seamless and secure data transfer, provide access to a wider range of financial services and products, and can help improve connectivity and integration.

As we covered, by using APIs, fintech companies can gain a competitive advantage, reduce operational costs, and increase speed and agility. Investing in API development is crucial for fintech companies that want to stay competitive and thrive in the fast-paced North American market.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.