Digital transformation across industries is largely driven by consumer demand and in an always-connected world, customers have grown to expect digital support and streamlined services from every business they encounter. This makes it necessary for less tech-savvy companies to embrace digital solutions that would cater to their customers’ needs.

In response to these evolving demands, conservative business industries, such as financial institutions, have begun integrating digital capabilities into their services. Many traditional banks have invested in comprehensive digital banking software solutions to modernize their operations. However, beyond offering digital capabilities, banks are obliged to provide customer-centric services that are digitally driven to enhance personalized experiences for customers. This is essentially how servitization works—by providing an ecosystem of connected services that differentiates a bank from its competitors in the market.

As the world grows more connected in the digital age, servitization has become an increasing trend among businesses. This practice involves delivering different service components to drive value for a company’s existing products and services. Banks can only achieve this if they fully embrace digital transformation and use tools that enable them to provide better services. Read on to learn more about how banks can leverage today’s growing servitization trend.

Shift to Open Banking for Flexible and Secure Transactions

In order to provide full servitization, financial institutions should be able to offer flexible banking services to their clients. Many customers use different bank platforms and internet-only financial apps to send payments and transfer funds. These customers also want the convenience of being able to use different digital financial apps without having to worry about whether their data is safe. To address this growing need, many financial institutions are now shifting to open banking. 

Open banking is an industry practice that allows third-party financial service providers, such as Financial Technology (FinTech) companies, free access to customer data. This is made possible through the use of Application Programming Interfaces (API), vital tools that allow different software to interact and engage with one another. API development encourages the use of open industry-approved applications that banks can use to enhance their services. As an example, APIs can enable banks to provide real-time money transfers for their clients.

With open banking, customers are not only free to use their data to apply for any available third-party financial service. This also opens a secure network of accounts for banks, customers, and third-party providers.   

Use of AI Technology to Deliver Smart Banking Experiences

Another way banks can increase servitization is by improving customer experience. This can be done by using artificial intelligence (AI) technology with machine learning capabilities to interact with customers. In fact, large banks have already started using AI chatbots that mirror human communication.

AI-enabled chatbots can answer customer inquiries and process requests. Many banks are now using these for lead generation to encourage customers to sign up for services. AI chatbots also automate multiple requests simultaneously, which frees up more time for bank employees to do other important tasks. This helps improve the overall customer experience while boosting operational efficiency.

However, while AI technology is helpful in helping customers, it does not completely replace personal interactions. Some customers still prefer face-to-face engagement or live chats with financial representatives when it comes to discussing specific banking issues. Thus, banks should sustain these communications channels with clients, even with increased digitalization.

Use Data to Develop Customized Financing Options for Customers

Banks are in a good position to use AI technology to analyze customer data. By using AI and machine learning to generate insights, banks can glean valuable information to understand what their customers truly need. This data lake can also be used to create customized loan products for a wide range of customer profiles. As a result, clients will be happier when they receive customized products that truly put their needs first.

Providing Bank Access Through Internet of Things (IoT)

The Internet of Things (IoT) pertains to a network of connected objects outfitted with software and sensors that allow them to exchange data. Examples of these objects are mobile phones, tablets, and smartwatches that can exchange data via Wi-Fi internet or Bluetooth connectivity. Using these, many people can access their banking apps virtually anywhere they go.

Banks have started tapping into IoT technology to provide more convenient services to customers. Because IoT technology allows direct communications between devices, this enables banks to provide convenient cashless automated payments for customers. Instead of using cash or a credit card, customers can scan their smartwatch at a store counter to purchase items. Customers can even use their mobile phone to check for the nearest ATM machine to their bank and schedule a cash withdrawal.

Another advantage of IoT technology is real-time data gathering. As long as customers have a device and use their app, banks can track customer activities and trends. This is another way to gain insight into consumer behaviors, allowing banks to tailor their services as needed. These are just several examples of how banks can capitalize on the servitization trend to provide more streamlined digital services for their clients. In a world where everything is always connected, customers expect banking services to provide different options for their needs. All of this results in an enhanced customer experience and greater trust from their clients.

The post Here’s How You Can Capitalize on the Servitization Trend Today appeared first on Platform to Showcase Innovative Startups and Tech News.

Clarity Money is one of the most popular management apps out there. Founded in 2016, it acquired a fan following for its ease of use and functionality. In 2018, Goldman Sachs acquired it for a whopping $100 million. While Clarity Money continued its successful run for a couple of years, it eventually was shut down. This decision came on the back of Goldman Sachs deciding to direct their efforts at creating a financial service of their own called Marcus. 

Keeping this in mind, this article will take you through the features that Clarity Money had to offer and compare them against what Marcus by Goldman Sachs brings to the table. 

What is Clarity Money? 

Created by venture capitalist Adam Dell, Clarity Money is an AI-powered financial aid that aims to bring all your personal finances under one platform. All you need to do is link your bank accounts to the app. The process is rather simple and will only take a couple of minutes at best. They’re compatible with over 9,000 financial establishments from across the country.

Once you link your bank account, you’ll see multiple tabs displaying relevant information like accounts, transactions, and settings. By analyzing your spending patterns, Clarity Money’s proprietary AI suggests ways to cut back on overspending. This allows users to take charge and make smart financial decisions. 

Clarity Money App: Pros

Now that we’ve understood how Clarity Money works, here’s a detailed look at its various features:

• Balances and transactions 

This is the first information that you’ll come across once your login details are authenticated and accounts are linked. The app displays your current account balances, investment portfolio, credit card details, and debt. Your recent transactions show up in the next section. 

The addition to this rather standard feature is the inclusion of logos of the brands and companies that you’ve sent or received money from. This subtle visual cue makes it easier to process information for an average consumer. 

• Reminders and graphics

Reminder widgets come in handy, ensuring that you don’t miss out on an important deadline. Yet another useful feature is infographics that depict your cumulative income against the money you’re spending within a specified time period. This gives you an idea of whether your spending pattern is healthy or not. 

• Integration of investment platforms like Acorns 

One of the ways that Clarity Money makes money is by tie-ins with investment apps like Acorn. They end up getting a commission on every user that signs up. This integration means that you can view your current settings, making the whole process of investment seem seamless. But to make changes in your portfolio, you need to make changes on the Acorns app.

• Budgeting 

Budgeting is one of the most popular features of this personal financing app. Clarity Money gives you the chance to set up spending caps across different categories like shopping or entertainment. 

You’ll be alerted once your spendings cross the specified amount. In addition to this, you can also track how much money you’ve spent on a specific retailer over the course of a week, month, or year.

• Cancellation widget

Another cool feature on offer is the “Anything you’d like to cancel” widget. Here, you can look through your active subscriptions and cancel them if it isn’t of any use to you anymore. Log into your Clarity Money app, head to the cancellation widget, select the service you wish to terminate, and submit a form. 

That’s how simple it is. This holds true for popular services like Spotify or Hulu. But, in some cases, you might be redirected to the Contact Us section of a company’s web page. 

• Credit Score checks 

Via its tie-in with VantageScore 3.0,  the Clarity Money app lets you check your credit score once a month for no additional cost. This will in no way impact your credit score.

• Money Alerts

You can enable push notifications to send you a quick message in instances like:

• For when you receive a payment 
• When your account balance is dangerously low
• Any upcoming bills and pending payments
• If your weekly spendings coincide with your budget

• Additional benefits: Clarity Money savings

Clarity Money users can create a custom online savings account. You get to pick the account from where the money will be redirected towards the savings account. For instance, you can decide to put aside $15 every week from your primary account to get the latest iPhone or go backpacking through Asia. 

Unlike in a conventional bank, the app does not charge you to keep your savings account active. You have unrestricted access to the funds at all times, unlike in a fixed deposit. The annual percentage yield was an unheralded 1.05%. Meanwhile, Marcus by Goldman Sachs upped this number to 1.35%. 

Clarity Money App – Cons 

While Clarity Money has many useful features, it’s received flak for its lack of options to customize the app. It doesn’t allow you to attach budget categories of your own. 

You’ll need to stick to the preset configurations. For instance, if you’d like to create a new category for, let’s say, “gym equipment,” the app doesn’t let you do that. This custom category would instead be merged along with a broader category like “Shopping.” 

The same applies to moving blocks on the money management tile. You’ll need to scroll all the way down to access the details of a specific brand or company of your interest. But, if integrations like Acorns aren’t of any use to you, you can delete them. 

On the other hand, manual inputs are not allowed since the app only tracks recent transactions from the accounts you’ve linked. 

Marcus by Goldman Sachs 

Having understood the merits and demerits of Clarity Money, the next obvious step is taking a closer look at its replacement, Marcus by Goldman Sachs. How does this relatively new service stack up against the original?

Similar to Clarity Money, Marcus lets its users connect their bank accounts. The app provides a detailed description of a consumer’s spending habits, savings, and investment options. 

On the other hand, the budgeting tools that were a hit among the users of the Clarity Money seem to have been removed. This could be a deal-breaker for users that were dependent on the app to cut down on their spendings. 

But, the platform is cleverly designed and is easy to use. Bank details get linked up in no time at all thanks to the use of a similar interface as its predecessor. The global giant will be hoping that the familiarity would convince the users of Clarity Money to continue with Marcus. 

Other alternatives

If you aren’t admittedly happy with Marcus, here are a couple of other options worth considering:

• Mint

This app’s overall look and feel is fairly reminiscent of the beloved personal finance app, Clarity Money. The first dashboard gives you a break-up of all your accounts with the current balances. 

But, unlike Marcus by Goldman Sachs, it does house the budgeting tool. A line graph showing your spending pattern is placed smack in the center to make you think twice before making another hasty purchase. 

The only real drawback of this elegantly designed app is getting your account linked up. Instead of letting you integrate the account onto the app directly, it redirects you to the bank’s web page. You’ll need to authenticate the sign-in in order to finish the set-up process. 

While the process isn’t all that tedious, it might be a bit taxing for users of Clarity Money or Marcus. 

• PocketGuard

The app’s design allows users to know how much money remains from the allocated budget. While the app is fairly simple to use, it makes use of a third-party service called Finicity to track your finances. So, you’ll need to get on board with the terms and conditions before getting started on PocketGuard. 

Conclusion 

Clarity Money was nothing short of a trailblazer in the personal finance space. It became a raging hit owing to its large number of highly useful features. This included linking up multiple bank accounts at once, tracking finances, and analyzing spending patterns. In addition, users could earn interest on an online savings account thanks to its unique savings program.

The shutdown of Clarity Money by Goldman Sachs is sure to leave an unfillable void in the market space. Its replacement, Marcus, might be a sleeker alternative, but this comes at the cost of omitting some key features like budgeting. As it stands, the newly improved version of Mint might be the closest one might get to replacing a trusted app like Clarity Money. 

The post Clarity Money: Detailed Analysis With Pros & Cons appeared first on Platform to Showcase Innovative Startups and Tech News.

Industry-leading personal finance management app Emma has confirmed a new partnership with online mortgage broker Trussle. The Emma app allows users to combine all their bank accounts in one handy place, whilst educating users about areas of their spending where they are being overly wasteful. The app aims to put consumers firmly in control of their hard-earned money again.

Trussle’s mortgage advice, which is available exclusively online, will soon be integrated within the Emma platform. With the Emma app already focused largely on budgeting, monitoring, and saving funds wherever possible, there was a direct synergy between both brands, with Trussle helping Emma users to get the best value mortgage deal for their unique circumstances.

Unlocking “endless opportunities” for Emma users

The Emma app alerts users when they are spending more than they should be on bills and utilities and when they are close to running out of money in their account before payday. Edoardo Moreni, founder and CEO of the Emma platform, said that the app’s ultimate goal is to help users “live a better financial life”. Moreni says that its partnership with Trussle expands its offerings into “real actions in people’s lives”.

It’s hoped that Trussle’s integration will enable Emma users to save money on purchasing their first home or an upcoming remortgage. Ian Larkin, CEO of Trussle, described buying property as one of the “biggest financial commitments” in anyone’s life. Trussle’s exclusively online services will be made available to all Emma users, allowing them to get a clear handle on “how much [they] can afford to save and borrow” prior to making a mortgage application or seeking an agreement in principle with a lender.

Mortgage approvals are said to have been at record levels for the UK in 2020, with the broker experiencing a 154% increase in approval rates during the second half of the year. The West Midlands proved to be a particular mortgage hotspot during this period, registering a 244% rise in approval rates for properties across Birmingham and the Black Country. However, delays in the industry have seen the average time from a mortgage application to completion rise to 134 days.

Trussle has rapidly developed a reputation for intuitive, straight-talking mortgage advice and tools. The brand’s most recent success was its stamp duty calculator, which enabled buyers to estimate how much money they could save on a prospective house purchase during the recent stamp duty holiday. Aside from displaying how much a buyer would spend on stamp duty land tax (SDLT) during and after the holiday, it also highlighted those mortgage lenders that are taking the shortest time to approve mortgage applications and get things moving with the holiday deadline fast approaching.

As more homebuyers and remortgagers adopt digital services like Trussle, the company opted to seek regulatory approval from the Financial Conduct Authority (FCA) to operate as a Directly Authorised (DA) business. In achieving its new DA status, Trussle automatically becomes one of the top 20 biggest mortgage brokers in Britain. Larkin believes this latest step will enable the brand to “deliver on the full potential” of Trussle’s online-only services.

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API or application programming interface seems to be a buzzword that you have likely been hearing a lot of as of late. What is it exactly and why is it so popular? To put it simply, API is simply a process that allows different software systems to directly communicate with each other. It is through APIs that different apps and websites are enabling data to be shared and processed in real-time. The connection and communication between these systems can also be constant and continuous.

You have likely used an API without even knowing it as many apps rely on this technology to maintain their functionality and provide a user-friendly experience. For example, if you need to get somewhere by booking an Uber ride, the app smoothly integrates Google Maps, Waze, PayPal, and other payment channels to track your location, aid the driver in navigation, and allow you to do the cashless payment. All these processes are possible because of APIs, and the application of APIs is wide and far-reaching.

How APIs Are Breaking New Ground

Our world is constantly evolving towards a digitized and integrated sphere where technology is transforming entire industries. The banking and financial sectors are no different as electronic methods are slowly becoming the norm across many banks and financial institutions. With the introduction of online banking, people have experienced a level of convenience that was previously non-existent with many banks. Other banks have started opting to be API-driven, enlisting the help of companies like Stoplight to help them execute it.

How many of us have groaned at the idea of waiting in queues for something as simple as a cash deposit, going to banks the minute they open to avoid long lines or delaying certain transactions because the banks were closed? While online banking has eliminated a large amount of the hassle involved with doing in-person transactions, some individuals and businesses require an even faster and seamless experience. This is where APIs come in.

Online banking can still have limitations as some transactions may require your physical presence at a bank to be verified, a banking API can eliminate that hurdle by verifying your identity via security checks like a fingerprint scanner or a user login screen. Just like with many websites and apps, there is a greater demand for real-time banking that is accessible. With APIs, it is easier for consumers to use their banking apps to make payments, receive money, keep track of their finances, and simply do more no matter what time it is or where there are. The integration of APIs makes all these possible, giving consumers more choices when it comes to banking.

However, the use of APIs goes beyond making banking more flexible for people. It is also changing how banking is being done with the rise of open banks and digital-only banks.

The Future of Banking

While many traditional banks have rolled out their own apps for easier and more convenient banking, some banks have taken a step further by operating on an exclusively digital scale. The growing popularity of digital-only banks is one of the biggest examples of how APIs are truly shaping the banking industry. The idea of a bank operating without a physical building used to sound ludicrous, but that is no longer the case.

The seamless integration and constant communication between different programs have made digital-only banks a possible and successful business model. Additionally, more digital-only banks continue to pop up around the world. APIs have made it possible for smaller and newer banks to offer a wide range of services that used to be exclusive to big-name banks. For example, smaller banks can work with fintech institutions that can supply the technology that they need for specialized services. This can help them rapidly improve their marketing strategy and customer service.

Open banking is another process that is changing how banking and finances are being handled, and the hype is well-deserved. The use of APIs to facilitate a more diverse banking experience is slowly making the banking and financial sectors more digitized as time goes on. Open banking allows banks to continue providing banking services while giving users greater flexibility to use the money in their account on other platforms that their bank cannot allow them to do by itself.

The openness in open banking comes from the use of open APIs to facilitate these processes. It can be seen with the switch of ATM cards to EMV chips to allow faster transactions over a wider range of networks and how you can input your card data into many websites and apps during checkout for easy payment. Your bank will let you open and maintain an account with them, but the use of the APIs allows you to do more with your money.

The Issue of Security and Regulation

The biggest criticism towards the integration of APIs into banking and finance is the bigger threat of security breaches and the lack of regularization. Since APIs rely on connecting to and sharing information across different third-party apps, your data is shared and stored across these platforms as well. There is a huge need to standardize and regulate how APIs are designed and developed by people in order to keep transactions secure and uphold vital information as confidential.

Fortunately, there are groups coming together around the world to ensure that standardization, as well as integration, is being facilitated in the API space. Large companies, software developers, lawyers, and other relevant parties are working together to create and enforce standards while finding holistic solutions. After all, regulating APIs is about overcoming technological, business, and ethical challenges that require input from varying perspectives.

APIs are not inherently evil and can be used for the common good. As seen by how much better peoples’ banking experiences are now. It is up to the individuals and businesses involved to ensure that APIs are being created following a set of standards and that developers and users are complying with these regularizations. This way, any bank can benefit from integration while maintaining the public’s trust in them.

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