Selling to Banks with Success
Remco Veenenberg
Sales Expert | FinTech & Banking Influencer | Public Speaker | Startup Mentor | Top 100 Fintech Influencer (Onalytica)
Unlocking Insights: Selling Fintech to Banks - Wisdom from Chintan Shah
?? We as Fintechs all want to sell our solutions to banks. Today, Chintan Shah, a banking expert from the UAE, renowned for spearheading transformative core banking projects with Emirates NBD and Gargash Group , shares core insights. Here's what fintechs need to know when selling to banks, especially in the realm of core banking systems:
?? Listen and Learn:
- Instead of pushing solutions, focus on understanding the needs and concerns of banks. Take a proactive approach to listening, engaging in meaningful conversations, and uncovering pain points that your fintech solution can address.
?? Key Learnings:
- ?? Linking Digital Transformation to Core Banking Agility: Banks are increasingly recognizing the pivotal role of core banking systems in driving digital transformation. They seek solutions that enable agility, flexibility, and scalability to adapt to evolving customer demands and market trends.
- ?? Alignment with Business Aspirations: Opportunities for core replacement often lack alignment with banks' broader business aspirations. Fintechs must understand the strategic objectives and long-term goals of their banking clients to tailor their solutions accordingly and demonstrate tangible business value.
- ?? Transparency in Core Modernization: Transparency is paramount in core modernization efforts. Fintechs should provide clear insights into the implementation process, potential challenges, and expected outcomes to build trust and confidence with banking partners.
- ?? Aligning Technology Investments: It's crucial to align technology investments with banks' current business capabilities to deliver sustainable value. Fintech solutions should complement existing infrastructure, integrate seamlessly with legacy systems, and offer scalability to support future growth.
- ?? Embracing Modern Financial Services: Fintechs should embrace modern financial services like open banking, banking as a service, and embedded finance to drive innovation and differentiate themselves in the market. By offering innovative solutions that address emerging customer needs and preferences, fintechs can position themselves as strategic partners to banks.
- ?? Addressing Business Challenges: When presenting fintech solutions, it's essential to address business challenges and opportunities for core replacement in business terms, not just technological. Fintechs should articulate how their solutions solve specific business problems, improve operational efficiency, and enhance customer experience.
?? Evaluation Criteria for Core Systems:
- ?? Identity and Access Management: Multi-Factor Authentication, OAuth 2.0, etc.
- ?? Integration: Enterprise integration patterns, standard API repository/Swagger, messaging broker/service bus, provision for bulk uploads/downloads, support for 3rd party integration, API ready connect with market standards like Bloomberg, SWIFT, FTS (UAECB).
- ??? Development: Extensibility, ease of development of new products.
- ?? Management: Custom code management, logging, monitoring, observability, traceability, customer and master data management, ease of configuring product parameters, client engagement and communications, chart of accounts and general ledger setup, trial balance management, ease of configuring and maintaining rules for fraud checks, risk profile and grading, End of day(EOD) execution
- ??? Architecture: Enterprise-proven, service-oriented architecture approach, event-driven based capabilities, microservices with modern RESTful APIs, scalable and extensible, Data designed for cloud (PaaS) but agnostic to distribution/hosting channel, modern yet proven tech stack
- ?? Security: Compliance with standards like PCI-DSS 3.2 , ISO , SOC TSP, Azure CIS 1.1.0, OSPAR attestation reports, security certifications, encryption at rest and transit, fully managed encryption keys service.
- ?? Storage: Data localization, compliance with UAE Data Protection Law.
- ?? Pricing and Billing: Total cost of ownership, multiple options of pricing and packaging options for services.
- ? Service Levels and SLAs: Recovery Time Objective (RTO) and Recovery Point Objective (RPO), SLAs to protect customers against data loss and data integrity issues.
- ?? Support and Communication: Local presence in UAE/GCC, migration approach and support, professional services for implementation, support, and deployment.
?? Points to Note:
- ?? Set Clear Expectations: Establish clear expectations and metrics upfront to align with banks' objectives. Define project timelines, deliverables, and success criteria to ensure mutual understanding and agreement.
- ?? Ensure Compliance: Ensure compliance with local regulations and data protection laws to mitigate risks and build trust. Stay abreast of regulatory changes and adapt your solution accordingly to maintain compliance.
- ?? Provide Local Presence and Support: Establish a local presence and provide robust support for implementation and migration activities. Offer on-site assistance, training sessions, and ongoing technical support to ensure a seamless transition and optimal user experience.
- ?? Foster Collaborative Partnerships: Foster a collaborative approach with banks, focusing on partnership rather than just a vendor-client relationship. Act as an extension of their team, actively listening to feedback, and continuously improving your solution to meet their evolving needs.
- ?? Stay Agile and Adaptable: Stay agile and adaptable to evolving market trends and regulatory requirements. Invest in research and development to innovate your solution, anticipate future challenges, and capitalize on emerging opportunities in the banking industry.
Stay tuned for more insights and discussions on the challenges, I have a list of noteworthy people sharing insights upcoming
Connect with Chintan, he's been one of the best experts I've come across during my career ??
Cheers everyone,
Remco & Chintan
#banking #fintech #futureofbanking #digitaltransformation
Solutions Architect for Amazon
7 个月Great Insights and nicely articulated Chintan Shah & Remco Veenenberg. It's crucial for a fintech to solve a problem for the bank while being innovative and agile to adapt according to bank's need. You did touch upon all the points be it Architecture, Security, Compliance, Customer first approach and not to forget TCO which can make a great Bank-Fintech collaboration. Would love to see more coming from you guys.
Empowering Women and Driving Business Growth in UAE | Co-Founder Inova Global Solutions | Mentor | VP at EWA European Women's Association | Bridging Companies to UAE & Nurturing Investment Relations.
7 个月Remco Veenenberg, I value Chintan Shah's insightful contributions. Drawing from my experience in the traditional banking and investment sector in the region, I fully support the view that Fintech solutions are reshaping the banking industry. By aligning with institutions' strategic objectives, these solutions pioneer innovative approaches to meet evolving client needs. For example, digital lending platforms streamline loan processes, expanding bank portfolios while mitigating risks. Similarly, customer-centric tools like personalized mobile apps and AI-driven chatbots enhance engagement, fostering customer satisfaction and loyalty. Furthermore, blockchain-based solutions bolster transactional security and efficiency, ensuring transparency and regulatory compliance. These technologies enable banks to navigate the financial landscape effectively, fostering stronger client relationships and sustainable growth. In my 17+ experience in the region, I've witnessed the importance of establishing a local presence. This is precisely the focus of INova Global Solutions. Establishing a presence and educational efforts in the UAE are vital for fintech companies and give them access to an ecosystem of banks, investors, regulators, and clients.
Banking Technology | Enterprise SaaS | Core Modernization | Digital Transformation
7 个月Very insightful, Chintan. Thanks, Remco for this.This is a ready cheat sheet!
Dreamer ?? Advisor ?? Founder ??
7 个月Chintan Shah’s emphasis on understanding rather than just selling speaks volumes about the evolving dynamics between fintechs and traditional banks. Banks are indeed looking for agile partners who bring innovation and possess a deep grasp of regulatory landscapes and customer-centric strategies. Fintechs that master the art of aligning technological capabilities with the strategic goals of banks will likely stand out, creating partnerships that transcend the usual vendor-client dynamics and define the way for transformative collaboration. It’s clear that the integration of fintech solutions into traditional banking must be both thoughtful and strategic to enhance core banking operations while staying firmly aligned with business objectives. From my own experience, the most fruitful collaborations arise from avoiding the typical vendor-client pitfalls and fostering relationships grounded in mutual trust and understanding. It’s essential for both parties to establish clear boundaries of responsibilities, recognize each other's strengths, and align on a shared vision and objectives. This ensures that fintech solutions are not just add-ons but integral components that drive forward the bank’s strategic goals.
Sales Expert | FinTech & Banking Influencer | Public Speaker | Startup Mentor | Top 100 Fintech Influencer (Onalytica)
7 个月My friends, core banking experts, and others, your feedback is valuable - Thought Machine, Mambu, Tuum, 10X Technologies, Vodeno, FintechOS Also Michael Bist, Barna Er?ss, Jeroen de Bel, Ben Goldin, Dagmar Turkova, Imre Kiss, MSys Technologies