Growing neobanks and fintechs that focus on niche consumer segments is difficult because t's become easier for big banks to branch out and start to cater to niche consumer segments.
One immigrant focused fintech, Majority, has emerged stronger. Dive into how the firm has used a 'diaspora by diaspora' strategy and community engagement to double its user growth.
SMBs are keen to invest in AI and boost their digital payment adoption. Concurrently, they expect their financial service providers to focus on these areas.
Financial firms are investing in SMB digitization tools and boosting embedded payments strategies, while also exploring diverse and unconventional approaches.
Fintechs have been better at offering personalized experiences than banks, but some of the biggest banks in America have played catch up and are now leveraging internal data to offer more personalized experiences.
This falls short of ideal personalization, where an FI uses both internal and external fintech data to fully understand a customer's financial life. While challenging, some infrastructure like API-based data sharing exists.
Fifth Third has partnered with SpringFour on its Financial Empowerment Mobile (eBus), which brings banking products and financial health resources to underserved communities.
The partnership and relaunch of the eBus comes after a year and a half work involving a diverse range of stakeholders across the bank.
The Capital One-Discover deal may be driven by the complementary attributes of their customers, potentially leading to changes in product offerings and services to better serve consumers.
The combined entity could introduce a rewards based debit card as well as relaunch Discover's credit cards for SMBs. Beyond products however it is unlikely that the UX will change dramatically.
