Banks and other licensed financial institutions

Leapfrog into the digital age

Bring state-of-the-art product to your existing clients, do not let them churn and walk away to the neo-banks

How we address the pain points of banks

and other licensed financial institutions

The last five years have brought tremendous change to the banking sector and the financial sector in general. The advent of the fintechs and the relatively well funded neo-banks raised the bar for consumer experience to new levels. Consumers have really been empowered, requesting superior User Experience (UX) and ease of use. Experiences are valued much more than traditional banking relationships.

 The large banks struggled for some time in a love-hate relationship with the fintechs, but over the last few years most of them managed to bring a decent digital experience to their clients. All these transformation projects have cost a lot of money and drained resources, but have allowed big traditional players to maintain their competitive position as the large player.

 Medium sized banks and smaller financial institutions, however, are now between a rock and a hard place. They feel the pressure of the fintechs on one side and the re-invigorated power of the large banks on the other. They need to have an answer so that their established client base does not migrate to other providers. Life for smaller banks has become much more difficult:

  • Delivering a proper digital experience requires substantial investments, which may not be economically justified in the absence of sufficient scale.

  • Expertise is of short supply in a highly competitive area

  • Card issuance has become much more complicated with the omnipresent requirement for card tokenisation;

  • Ever evolving and complicated AML policies are making transaction monitoring challenging even when one operates within a long-established client base;

Paynetics helps small and medium sized banks and other financial institutions to be more competitive in the digital banking space by offering economical and quick to deploy solutions:

  • White label digital banking app  – our digital banking solution is a modern alternative to a traditional bank account, providing all of the banking basics with added value features and benefits to fit the changing lifestyles of your customers and help them manage their money safely, easily and efficiently. It builds on years of developing and deploying e-Wallets across Europe. We offer automatic choice of a Mastercard and Visa with built in enhanced security features and all the functionalities of a bank debit card. Driven by the continual rise of digital payments, our digital banking proposition is mobile first, incorporating the latest in UX, UI and tokenisation technology.
  • Your accounts, our cards –  for banks and EMIs, who already have account services and a mobile app, we offer an easy way to add on a card. We provide an easy to implement flow with master virtual account for loading the cards.

  • Card tokenisation as the next level in card usage – it has become a must to be able to offer your card in a tokenised form, so that it can be used on a phone. We offer the technology to enable adding cards in ApplePay and Google Pay from your mobile apps. For anyone who would like to enable their app with push provisioning this solution is a game changer, delivering significant efficacy in terms of cost, effort and maintenance. We can support your tokenisation with our SDK or we provide the necessary information through APIs for manual enrolment within your existing app.

  • Transaction monitoring –  we offer our existing integrations to offer state of the art transaction monitoring to meet stringent AML regulations and reduce fraud risk.

Why use Paynetics for a

Digital Banking Platform?

Our award winning platform offers a fast way to market with low upfront costs. We are proud to be at the forefront of providing mobile first digital banking solutions our clients in the EU and the UK and to offer unmatched customer experience through our ‘Tap and Go’, P2P, banking and value added services.

  • Superior UX – award winning mobile app, coupled with the latest in payment tokenisation for a fast checkout experience. Access and manage funds with the intuitive mobile application, move money instantly with Faster Payments, SEPA and P2P Transfers.
  • Security – Banking grade security coupled with next level of fraud prevention through tokenisation.
  • Digital assets – we can enable your clients to buy and sell digital assets in a transparent way, working with the most established players in the space.
  • Value added service – we have worked hard to develop value added products to help our partners build upon the lower margin payment services:
  • Credit Facilitation –
    • Paynetics has developed an attractive offering for the consumer credit market on the basis of its end-to-end payments capability and mobile banking proposition. The APIs can be easily integrated into existing e-Wallets, whilst virtual cards issuance brings consumer lending and BNPL scalable cross-border;
    • The combination of payment services and wealth of generated data provides unique insights into the purchase patterns and financial behaviour of the consumers, which strengthens and complements the traditional scoring model;
    • Once the program is up and running partners benefit from an uninterrupted access to data, enhancing operational excellence and allowing them to provide attractive propositions for their end clients;
    • Moving the credit proposition to a fully-fledged mobile banking app enriches customer engagement and allows lenders to have a more meaningful dialogue with the clients.

Use

cases

  • Problem/Challenge

Microcredit is a lending institution focused on providing small loans to clients in the near prime and subprime segments. Traditionally it has relied on an extensive office network and a large pool of agents to serve its clients.  Most of the loans are disbursed in the offices and payments are collected mostly by agents. Looking to streamline the process and move it more to the digital space Microcredit looked to the payment capabilities of Paynetics for an answer.

 

  • Solution

We looked at how to address some of the more laborious and inefficient parts of the process and focused on the disbursement of funds and collection. At the same time it was important to take into account the existing business model and offer products that would not harm the business by instigating too much change.  Our virtual POS was an ideal instrument to move repayments online, as it offered an additional channel, not disturbing the prevalent collection practice but at the same time it provided the opportunity for a large part of the client base to pay their instalments online. With regard to disbursement we provided Microcredit branded debit cards, reducing the administration expenses related to bank transfers.

Microcredit became one of the first microlending institutions to start moving away from relying on an extensive branch network. It launched its branded debit card to be used for both loan disbursement and general purposes.  This proved to have wider implications as some of its client base was unbanked and through the debit card product Microcredit managed to incentivise them to join the financial system. 

  • Problem/Challenge

BNP is one of the leaders in consumer finance in Bulgaria. They were looking for new distribution channels for client acquisition.

 

  • Solution

We offered them our credit module, integrated with the existing white label mobile banking instances in Bulgaria. This gave BNP instant exposure to tens of thousands of customers. The availability of transaction data improved the underwriting process and using the existing payment rails, the collection process was streamlined.