When we talk about fintech, personal finance apps such as Mint and Acorns, robo advisors and investment apps like Betterment and Robinhood, and neobanks such as Chime and Revolut are often the primary examples that come to mind.
However, the reality is that innovation in financial technology is relevant to any business that deals with money in some part of its operations. That’s basically every business.
The reality is that innovation in financial technology is relevant to any business that deals with money in some part of its operations. That’s basically every business.
As Open Platform’s CEO Abhishek Gupta says: “fintech and Banking-as-a-Service become a powerful vehicle for innovation when they enable companies to infuse banking services across industry verticals, beyond financial services.”
On the surface, it can be difficult to spot companies that rely on banking and payments services to support their customer experience, so we thought we would highlight a few for you. Following are three industries that are being silently revolutionized by access to API-driven banking and payments services.
1. Human Resources
It’s a hot job market out there, so finding new ways to attract and retain talent is top of mind for many employers. A range of companies are gaining traction in the market by offering solutions to employers that enable them to provide student debt repayment (FutureFuel.io), special wellness benefits (Carrot Fertility) or rewards programs (Bonusly) to employees as part of their benefits package. Every service operates differently, but most rely on creative ways to move money seamlessly and quickly between employers, individuals and other involved third parties or to hold funds for a period of time.
Anyone who has been trapped in an airport for hours on end with flight delays knows that flying can be frustrating, and so far, most commercial airlines have not been very successful in improving this experience. There are exceptions, however, which indicate a brighter future. United Airlines has rolled out a real-time voucher and automatic digital redemption program for their app users. AirHelp will evaluate how much compensation you are owed for air travel interruptions, manage the claims process with the airline and deliver the funds to you (for a fee). Flight marketplaces that connect plane owners, pilots, charter companies and flyers are making private flights more accessible.
These types of services typically rely on the quick and easy transfer of funds between parties to create trust that services rendered will be paid for and to create a seamless, fully integrated customer experience.
3. Real Estate and Property Management
As the homeownership rate among Millennials drops and more consumers expect ease and immediacy, property managers are rethinking how they deal with common tenant expenses, including collecting rent and paying utility bills. For tenants, having to mail in paper checks every month is time consuming and restrictive. What if you’re out of town the weeks before an upcoming rental payment or your landlord takes a while to cash your check? For landlords or property managers, dealing with piles of paper checks every month is a huge hassle.
Enabling tenants to pay their rent and other related expenses electronically makes this process easier and more transparent on both sides of the transaction. Companies like Tenant Cloud are generating buzz in the market with their property management software, which embeds payments services to make transactions easy and seamless. For individuals who do decide to purchase a home, companies like OpenDoor and Perch are consolidating the multiple aspects of home selling and buying into one unified process, including moving funds between parties at the right time.
“Fintech and Banking-as-a-Service become a powerful vehicle for innovation when they enable companies to infuse banking services across industry verticals, beyond financial services.”
-Abhishek Gupta, Head of Open Platform
As innovators across industries become savvy about the benefits of integrated experiences, we are constantly learning about new and interesting ways banking and payments can support and enable better customer experiences. At Open Platform, we’re excited to support these pioneers with our white label banking and payments services.
Get in touch to learn more about what you can build.
–The Open Platform Team