In a matter of months COVID-19 changed our world—but its impact is long-lasting, and is resetting and altering the trajectory of the fintech market. Digital transformation is now at the top of the business agenda for financial institutions. And those unable to keep up will be left behind.
FintechOS is the global technology provider for banks, insurance and financial services companies, and is taking a unique approach to digital transformation. FintechOS empowers banks and insurers to build, seed and scale unique products and hyper-personalised customer journeys, allowing them to undergo digital transformation in a matter of weeks rather than years.
In just two years the company has experienced tremendous growth. Not only are we working with 40 clients across the globe, we have more than 50 partners, are operating across more than 20 international markets, and have seen a staggering 450% year on year growth. And this is only just the beginning…
Teodor Blidarus is the Founder and CEO at FintechOS. Having worked in the financial services industry for almost 25 years, Teo has led the roll-out of technology for banks and insurance companies worldwide. He has grown several companies, three of which are now serving Fortune 500 customers in 30 international markets.
What has been FintechOS’ response to financial technology innovations?
Winning institutions are no longer those with the largest physical footprints. Digital channels have become the first choice for locked-in, convenience-driven, and connected consumers and businesses, making the customer experience the new battleground for growth. Large footprints, tech-muscle and spending power are no longer enough to determine success.
Financial institutions, therefore, need to arm customers and employees with better experiences, services and tools, enabled by new technology, to stay ahead of the game.
How has this changed over the past few years?
Banks and insurance providers have known for a long time that they need to change, but the COVID-19 pandemic has strong-armed them into undergoing some form of digital transformation. And what we’ve seen is only just the tip of the iceberg.
While there’s no denying that digital transformation is big, slow and expensive, not every institution’s journey will be the same. Institutions need to extract value from existing systems, databases and business logic by starting small, thinking big and scaling fast. Institutions should be able to transform by making small but systemic changes that can be scaled rapidly without impacting on operational resilience or requiring millions of euros of investment. While some may want to rip and replace, others will only want to change what is obsolete—meaning financial institutions can transform and scale at their own pace.
Is there anything that has created a culture of change inside the company?
Our disruptive approach is driven by the customer. We created FintechOS to transform the financial industry, empowering banks and insurance companies to act and react faster than fintech startups, to create smarter, slicker customer experiences.
What FinTech ideas have been implemented?
FintechOS is working with a range of leading banks and insurance providers to deliver personalised, fully digital customer experiences. Our customers include Idea Bank, TBI Bank, Hyperion Insurance Group and UNIQA to name but a few.
We also have partnerships with the likes of Microsoft, EY, Deloitte, Publicis Sapient and CapGemini to support deployment of our technology in multiple markets.
What benefits have these brought?
With FintechOS’ technology, banks and insurance providers have been able to support the migration to digital-first services, offering an unparalleled customer experience that maintains regulatory compliance.
By delivering fully digital omnichannel services, we’ve helped our customers increase time to money, productivity and operational efficiency, as well as significantly reduce sales cycle and processing time by as much as 70%.
Do you see any other industry challenges on the horizon?
We’re seeing an opening up and democratisation in the way that financial services are built, distributed and served. And the catalyst for this has been Open Banking, which has ignited innovation across the globe and put customers in control of their data. In the UK alone, two million customers are now using Open Banking-enabled products.
And while Open Banking is just getting started, Open Finance is fast approaching. Open Finance would extend Open Banking principles to give consumers and businesses more control over a wider range of their financial data. This will encompass savings, insurance, mortgages, investments, pensions and consumer credit, effectively bringing the wider financial services sector under Open Banking principles.
We are stepping away from transaction-led model, closed environments, products and systems, and heading towards data-led models, open environments, customer journeys and platforms.
Can these challenges be aided by FinTech?
With a whole raft of financial services firms introducing APIs, the opportunity to collaborate, partner and deliver shared services will skyrocket. But that opportunity will only be open to banks that have invested in rich APIs that go beyond the letter of the law.
By opening up their systems and adopting new technology, banks can create and deliver powerful services, access new markets and new customer groups, and be data custodians for consumers. The future of financial services is open, and for institutions to be successful, they should embrace openness with open arms.
COVID-19 was a wake-up call for all. The financial services sector needs to be less reactive and instead devise long-term proactive strategies focused on clear change. For the organisations held back by regulations and legacy technologies, now is the time to deliver end-to-end digital customer and employee experience. Digitisation isn’t a journey with a beginning, middle and an end—true digitisation requires constant change.