The COVID-19 pandemic and the resulting economic storm has led to immense financial and societal adjustments. When Congress introduced and passed the PPP initiative in just a matter of weeks, SBA lenders of all shapes and sizes were inundated with loan applications. Which are now translating into loan forgiveness applications.
The clearest market development from 2020 is that banks, credit unions, and alternative lenders must be prepared to do business electronically with any segment of their customer base. We are happy to provide a solution that any bank or credit union can implement in very short order.
The Classic “Build or Buy” Decision
Banks and credit unions have the choice to build their own technology solutions or license a software solution from a financial technology company. This decision isn’t new. Financial Institutions have been making this fundamental decision for decades. However, today, the stakes are higher. The speed of technological improvement has increased by orders of magnitude over the past 5 years.
If a business — not just financial institutions, but any business — chooses to build a technology solution in-house, they have total ownership and control over that solution, but they also bear the responsibility to ensure what they develop is delightful for their customers, and “doing software well” is not a core competency of many banks.
For financial institutions to produce software their clients love, they have to be all-in and that requires more than just capital. It requires human capital and cultural shift as well.
Financial Technology Solutions Require Core Integration?
Whatever the decision the financial institution makes, the core technology behind the financial institution’s operations must integrate with the new technology. This single point of consideration must be accounted for in any financial institution’s technology solution.
Or does it?
At FINSYNC, we’re thrilled every time we’re in discussions with a financial institution, and they move to the next step of integrating our technology with theirs by asking “what sort of core integrations are required?”
That’s where the conversation changes significantly. Our technology solution for banks and credit unions requires zero core integration. Lenders who chose our PPP Loan Forgiveness solution were up and running within 24 hours. No calls to the IT department.
Solving the Real Financial Technology Problem
The real problem in FinTech is not the technology itself, but the recognition that most, smaller financial institutions simply don’t have the research and development budget to build their own technology solutions for their business customers. Furthermore, core banking providers cannot deliver products that delight users and win customers from platforms that are rapidly building their own networks.
Add to that the fact that QuickBooks, among others, actually compete with the banks that recommend and refer new users to them. Like Square, Intuit, the company behind QuickBooks, offers business financing as well as merchant processing, payroll and other products that compete with services traditionally-purchased through FIs.
Ultimately, when a bank or credit union refers their business customers to other technology providers, the lender loses non-interest revenue but may also lose interest revenue and most importantly, the daily relationship with the business.
FINSYNC’s solution to this problem is our new Charter Membership Program for financial institutions. Charter Member lenders get instant access to our payments network. An online financing application with a connected underwriting portal, and cash flow management solutions that help banks win more business and grow more profitably. All of these tools are available to any bank or credit union with zero core integration required.
The Zero Core Integration, Plug-and-Play Solution
Now lenders can simply sign up, and immediately offer their business customers a full suite of financial solutions:
Payments – FINSYNC is the Zelle alternative designed for business. Your customers can pay and get paid on the same platform.
Online Financing – Instead of competing, work together. Accept applications electronically. If an application doesn’t fit your credit box, you can optionally refer out within the network. The new way banks and alternative lenders work together to back growing businesses.
Accounting & Cash Flow – FINSYNC is the QuickBooks alternative. Increase brand value and business longevity with the only complete solution for cash flow management
Generous Revenue Share
Charter Members receive a generous 30% revenue share on all FINSYNC products and services delivered through your financial institution. Based on our customer experience, the average annual revenue per business customer would be approximately $480. That number is an average, based on a small business with 15 Employees on Payroll, 2 pay periods per month, 30 ACH transactions per month, 30 Checks or Lockbox transactions per month, and approximately $15,000 in monthly charge card volume.
Do those numbers match up to your standard customer profile? If so, schedule a personalized demo at your convenience.