Why Making an Impact is important for Fintech companies
One of the most important things we discuss at PayRecs is how we can make an impact. I’ve mentioned in previous posts (link to elevating post) that one of the ways we implement the idea of innovation is to ensure that every feature, product update and user experience are centered around the idea of being impactful.
When we decide what updates and new features we want to make to the PayRecs app, we ask ourselves:
- “What will the impact to our customers be?”
- “How will this impact the commercial users of the financial institution?”
- “How will this impact the staff at the financial institution?”
That’s a lot of people to consider. We aren’t always able to weigh all of those groups equally. But, by focusing on how we can make an impact on one or more of those groups, we’re able to keep up with the expectation of innovation, help financial institutions remain competitive, and help them make an impact on their customer’s lives.
Why it’s important for financial institutions to make an impact
Community financial institutions have been the cornerstone of small business and commerce since they were established. However, with the changing landscape of digital finances and the ever-changing regulatory environment, it can feel too difficult for financial institutions to be “innovative” and therefore remain competitive. It becomes more difficult to make an impact on their communities and for small businesses.
A common refrain we hear when we talk to regional and mid-size financial institutions is that their differentiator is their people. Sometimes, they’ll have that idea fleshed out a bit more and go so far as to say it’s because they’re part of the same community as their customers. They’re your neighbors. Your kids’ friend’s parents. Average Joes.
Rather than focus on trying to positions themselves as “innovative”, which can be difficult when they’re competing against giants like Square, PayPal and Stripe, focusing on how financial institutions can make an impact on their customers can be a fresh take on the idea of “innovation” and help keep more customers and their deposits.
Questions financial institutions can ask themselves
When considering how a financial institution can best make an impact on their customers lives, questions they should consider are ones such as:
- What do our customers believe would be impactful to their banking experience?
- How can we deliver that impactful experience to them?
- Do we have the resources internally to implement the desired solution?
- What partnerships can we foster to easily deliver an impactful solution?
- What will the impact of implementing this solution be to the organization and its staff?
Delivering impactful solutions to customers can feel like a game of whack-a-mole for some financial institutions; constantly trying to implement something new but never really keeping up. For others, it may feel like they can’t move fast enough; that their competition is always one step ahead. But, considering these five areas can set financial institutions up for success when determining what projects and solutions they want to bring to market.
Examining what solutions will be the most impactful to their customers can help streamline the process and make it easier to prioritize which projects get internal resources allocated to them. In a world where not everything can get done, knowing which solutions your customers and staff believe will make a positive impact on their banking experience is critical to remaining competitive and a way to be “innovators” without having to be on the cutting edge of technology.