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Why FinTech Companies Keep Launching Their Own Banking Products

#artificialintelligence

While anyone could purchase a Certificate of Deposit (CD) that paid over 5% APY just a decade ago, the average rate for a 12-month CD is now just 0.59%. Worse, the average savings account rate is only 0.10%, which adds up to almost nothing regardless of how long you let your money grow. This just goes to show that low interest rates can be good for housing and borrowing but terrible when it comes to preserving capital and growing wealth -- at least a good part of the time. Fortunately, an array of online banks have saved the day by offering better-than-average rates over the last few years. This includes the CIT Bank Savings Builder Account, which offers a 2.30% APY on balances of $25,000 or more or on accounts that post a deposit of at least $100 each month.


Lessons from lockdown on life insurance products and pricing

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This, as has always been the case, can be achieved by continuing to challenge ourselves as an industry to focus on developing the "right" products (that meet customer needs) and by accessing customers in their preferred approach. Increased customer engagement provides product and pricing teams with information to tailor and target products more effectively. While traditional insurers have limited interactions with customers, innovative InsurTechs have through the use of technologies, such as wearables, shown that it is possible to boost the number of touchpoints to more than a hundred a year.


"Data will let us tailor our financial advice and product recommendations to each individual customer"

#artificialintelligence

Question: How do you think the banking sector is doing in Spain, and globally, at the moment, and are banks becoming trusted advisors to people around their money and their data? Answer: I think banks are trusted, in a way, but we still have a way to go if we are to do everything that we believe we can do to support people. Q: What do you mean? R: Well, take BBVA's stated ambition to bring the age of opportunity to everyone. At the moment I think banks – good banks like BBVA at least – are trusted to protect people's financial assets and to keep their data secure.


The Rise of Artificial Intelligence in our banks - Financial Services Deloitte Australia

#artificialintelligence

Artificial Intelligence in an open banking environment has revolutionised the way customers approach and leverage their financial information. The face of banking is changing across Australia and around the globe. With the launch of open banking and the Australian Consumer Data Right, the latest digital technologies and an ever-changing regulatory landscape, customers are demanding enhanced experiences and increased value for money. Artificial Intelligence (AI) is just one technology that is enabling banks and financiers to provide increased efficiencies behind the scenes, new product lines upfront, and to ensure a heightened customer experience for all. The customer experience has become the significant driver of any brand's growth and often their point of differentiation.


Banks warned of unhappy customers as tech giants join fintechs as competition

ZDNet

Capgemini has again warned Australian banks of the need to put the customer first, with traditional bank alternatives ready to scoop up unhappy punters. In the World Retail Banking Report 2018, Capgemini says that competition is no longer just coming from financial services startups, rather the big end of tech town is also making its presence known. "Australian banks are interested in collaborating with fintechs and bigtechs to make this happen, with 58 percent of banks beginning to think of their business as a platform. The bank of the future will look nothing like the bank of the past," Capgemini Australia and New Zealand Head of Financial Services Philip Gomm said. According to Capgemini, 32.3 percent of customers would consider turning to large technology firms for financial products and services, especially as younger, more tech-savvy customers are looking for options that suit them most.