Integrated finance poised to permanently change the financial services landscape

Retailers have been an integral part of the growth of integrated finance in recent years. For example, Kogan offers home loans, credit cards, and pension funds. Coles and Woolworths offered credit cards and IKEA bought a 49% stake in Ikano Bank; a UK based retail finance company specializing in point of sale.

The deal marks IKEA’s plan to enter in-store and online financial services, which will help make IKEA more affordable and accessible to consumers.

Mastercard Country Manager Richard Wormald says the payments landscape has continued to evolve to support seamless payment experiences to meet the changing needs of consumers.

The global payments company has partnered with fintech companies to create better results for customers.

“We live in an on-demand society, and as such, consumers are looking for more choices when it comes to payment options.

“People want to be able to access and use their money however they want and when they want, using any device they choose,” says Wormald.

He has witnessed the importance of integrated finance from the perspective of traders through the pandemic in particular.

“We are increasingly leading ever-active and digitally enhanced lives, and fintechs have been instrumental in creating end-to-end solutions that make this possible, from rapid adaptation to the evolution of digital commerce to securing the cybersphere, ”said Wormald. .

“Merchants have been able to adopt new payment solutions to better meet customer needs and create more streamlined online and in-store experiences to meet that demand.

“But fintech is about more than that – it’s about deploying technology that makes the world a better place: from helping consumers manage their finances better, to driving sustainability efforts. or ensure that small businesses have what it takes to navigate a tough economic landscape, ”Wormald said. .

The path to follow

A SaaS cloud banking platform provider, Mambu agrees that integrated finance is a real game changer for the payments landscape in Australia.

The rapid shift to integrated finance means all types of industries can leverage their existing customer databases and diversify their offerings to include financial services, says Mambu APAC Managing Director Myles Bertrand.

“We see everyone from retailers to telecom operators to automakers playing a role in this lucrative space, and consumers are responding positively. Why would you go to a bank for a loan when you can get financing from the same place you buy your big screen TV? “

And while consumer demand has been an important factor, the other driver of integrated finance growth is fintech innovation; We are seeing a dramatic increase in the use of APIs in financial services, and the adoption of the ecosystem approach – where banks or other customer-facing organizations work in collaboration with fintechs – is increasingly becoming more common, he says.

The rollout of amendments to the Consumer Data Right (CDR) will also open up new business and be a catalyst for significant change in the industry, he predicts.

Those who choose to use CDR will have their information transferred using secure automated data technology, which has already been deployed in the banking industry, power industry, and telecommunications industry to follow.

Bertrand adds: “I think we will continue to see huge activity in the integrated finance space. Australia is a little behind the rest of the world, but as we have proven before, we are catching up quickly.

Mambu is the world’s only true SaaS cloud banking platform. Launched in 2011, Mambu is accelerating the design and construction of almost all types of financial offerings for banks of all sizes, lenders, fintechs, retailers, telecom operators and more. Our unique composable approach means that independent components, systems and connectors can be assembled into any configuration to meet business needs and end user demands. Mambu has 700 employees who support 200 clients in more than 65 countries. In Australia, Mambu’s customers include Bluestone, Lumi, Nimble, Hay and Tyro. www.mambu.com

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