With thousands of Fintechs in the market constantly experimenting with newer products and services, the idea of bringing it all to a single platform was quite anticipated. However, Fintechs are now expected to do much more.
Fintechs began by designing a virtual universe where customers could choose from a range of products and services; however today, they are allowing customers to avail of all the services on a single platform. For instance, providing insurance with credit, payment gateways on investment platforms, credit on shopping apps, etc. Although Fintechs face an array of challenges pertaining to their strategic directions, they emerge with better services across financial needs.
The purpose of designing the ‘One Platform’ concept
Fintechs are creating single platforms for multiple services for several reasons:
- Convenience –
Having multiple services available in one platform makes it more convenient for customers to manage their financial needs without having to switch between different applications or websites.
- Cost Savings –
Developing and maintaining multiple platforms for different financial services can be costly for fintech companies. By offering multiple services on a single platform, they can save on development and maintenance costs.
- Cross-selling –
Fintechs can use the multiple services offered on a single platform to cross-sell their other services to existing customers, thereby increasing their revenue streams.
- Data Analytics –
Fintechs can leverage the data generated by the various services on their platform to gain insights into their customers’ financial behaviour, which can inform future product development and marketing efforts.
- Competitive Advantage –
Fintechs that offer multiple services on a single platform may have a competitive advantage over traditional financial institutions that offer separate platforms for different services. This can help fintechs attract and retain customers who prefer a more streamlined and integrated financial experience.
The benefits of having multiple solutions on a single platform
There are several benefits that users can enjoy when multiple financial products are available on a single platform –
How are Fintechs designing the ‘One Platform’ concept?
Fintechs are creating single platforms for multiple services by leveraging technology and partnerships with other companies. Here are some ways in which fintechs are creating these platforms:
- API Integration –
Fintechs can integrate different financial services, such as banking, lending, investment, and insurance, using Application Programming Interfaces (APIs). APIs enable different software systems to communicate and exchange data with each other, allowing fintechs to combine services from multiple providers into a single platform.
- Partnerships –
Fintechs can partner with other companies that offer complementary financial services to expand their offerings on a single platform. For example, a fintech company that provides investment services can partner with a bank to offer banking services to its customers, all through a single platform.
- In-house Development –
Fintechs can also develop their own in-house financial services and integrate them into a single platform. This can include building their own payment processing systems, digital wallets, or investment platforms.
- Acquisitions –
Fintechs can acquire other companies that provide different financial services and integrate them into their existing platform. This can help fintechs quickly expand their offerings and gain access to new customer bases.
Overall, fintechs are using a combination of strategies to create single platforms for multiple financial services, enabling customers to easily manage their financial needs from a single point of location. They are ensuring that their focal point is the users, their journey, experience and benefits.