When we talk about the customer journey, we often use buzzwords and adjectives like frictionless, seamless integration and personalization. Today’s SaaS companies are looking to explore beyond the “trendiness” of these concepts, wanting to investigate how weaving integrated payments & fintech into their software stack adds value.
If there is anything industry leaders such as Netflix and Uber have taught is that these concepts aren't simply afterthoughts to add to the experience--they are the experience. And without them, there is no journey. And without the journey, there is no customer.
While some of us are still wondering what the economy will look like over the next year, innovative organizations have already started to look at what’s next. In this blog post, we'll explore three ways integrated payments and fintech have become vital components of the technology stack in order for SaaS companies to stay ahead.
Integrated experiences help companies increase revenue by 2 to 5 x per customer.
Integrated payment and fintech solutions are quickly becoming essential for companies looking to improve the customer experience and build new revenue streams.
Embedded solutions have fast become known to offer several benefits, this includes:
☑️Improved operational efficiency
☑️Real-time visibility into financial operations
☑️Opens up new revenue streams
☑️New market opportunities
For instance, by centralizing vital financial data, businesses can gain a 360 view of their financial position. This enables them to act faster, make better decisions and reduce the costs associated with managing disparate systems (including the headaches).
Having access to the right data and being able to act quickly and accurately on customer needs enables companies to create tailored experiences, drive loyalty, and open up new opportunities for increased revenue.
Collecting and analyzing the right financial data throughout the customer journey has fast become a crucial way for businesses to create new revenue streams.
Certain industries have been slow to change; the lending industry is an excellent example of a sector facing threats from shifting economics. That being said, they also have tremendous growth potential by tapping into the right capabilities and identifying where to play across specific vertical segments.
Use Case: Loan Management Software Solutions gain the ability to assess the customer's creditworthiness and offer an appropriate loan amount and terms tailored to their financial profile. Additionally, they can increase revenues through origination fees and deliver a better customer experience leading to increased sales and more conversions.
Let’s face it, payment infrastructure alone is complex. It is expensive to build, requires a disproportionate allocation of resources to scale, and is full of risks. A fintech-first approach is one of the best ways to meet security and compliance requirements as your business grows. By incorporating payments and fintech into your software sack, you’re putting your company in a position to scale and accept higher volume without hesitation.
With an integrated solution, you can access numerous security benefits, including expertise, compliance, data encryption and monitoring, and response capabilities if there is an incident.
With fintech-as-a-service solutions, you can:
☑️Ensure that sensitive financial information is protected and secure using techniques such as data encryption.
☑️Offload the massive undertakings around underwriting and onboarding to the fintech as a service solution.
☑️Reduce the risk of fraud with secure payment technology offerings
☑️Increase efficiency and expedite the payment process
☑️Offer embedded alternative payment options.
We have gone from every company will be a fintech company to every company is a fintech company.
As the business landscape evolves, companies must stay ahead of the competition. Integrating payments and fintech into your software stack ensures that you are growing along with the industry and outpacing your competitors.
The embedded finance market is about to become 10x where we are today. By 2025 it is expected to hit $230 billion. We are noticing an increasing number of software solutions wanting to offer payment and financial solutions embedded into their software stack.
Not only is it seen as a way to streamline the customer experience, but it has become a recognized signal to the consumer that holds an underlying message, “here’s an innovative company that values my time and places a high importance on ensuring my convenience.”
Companies need to understand what their customers value; this often requires an integration of multiple touchpoints. Don’t disrupt the experience by sending your customers away to another siloed system to complete their journey. This is how software solutions can separate themselves from the pack.
Provide customers with the ultimate convenience. Let them pay how they want, where they want and give them control over their financial transactions. A better experience leads to a stronger relationship that unfolds into long-term customer retention.
Don't let your business fall behind the competition. Embrace fintech solutions and unlock the full potential of your platform. Provide your customers with a comprehensive solution that supports them 24/7, 365 days a year and streamlines your operations for improved efficiency and success.