FinTech solutions offering a new type of service excellence

The Financial services industry faces a lot of changes in terms of regulation and compliance, customer retention, FinTech threats and profit margins. The increasing pressure from regulators along with the need to automate processes within the organisation are best met with the use of the right software that can make operations more agile, allow easy compliance to changing regulatory requirements and ultimately offer a competitive client experience that could lead to higher margins.

Theodore N. Krintas, PhD, Executive Vice President, Profile Software

In terms of regulations, the financial services industry has been continuously affected by the changing regime in Capital Adequacy with Basel II/III, the processes, transparency and commissions in favour of the client with MiFID I/II as well as the continuous changes in the Alternative Finance, Marketplace Lending and Crowdfunding that now sets more parameters for the start-up and existing firms.

These changes revolve around customers and their best interest thus they keep evolving. Firms whether in the investment or banking domain are called upon to comply with the new environment. In some cases, this was done pretty fast (i.e. RDR in the UK) with ambiguous results. In other cases (i.e. Crowdfunding) it took some time for the situation to develop in its entirety, and now that the dust has settled, a more mature landscape of offering has been formed and the regulations provide greater coverage.

When an organisation has rigid operations there might be a lack of flexibility in adapting to new regulations and market trends. This creates an opportunity in the marketplace for start-up firms to emerge and deliver a new set of services. This type of firms usually has the infrastructure to quickly deploy changes in their processes much faster than established firms, thus delivering differentiated and innovative services to clients more competitively.

This is a prime reason why the FinTech organisations developed their operations, ranging from the alternative finance platforms to robo-advisors, as the end result is faster customer service appealing to new age banking customers and investors. This makes existing financial institutions to re-visit their IT infrastructure and service offering to compete effectively, or as many do lately, to collaborate to gain technological know-how and thus expanding to new markets. With such “disruptors” in place, technology allows for greater flexibility.

Furthermore, regulations do not just create a burden and more expenditure, they also provide the fertile ground for long term benefits, such as MiFID II (the biggest regulatory shake-up of European financial markets in a decade), that focuses on transparency, fees management, reporting and client onboarding. To achieve this, firms would need to choose the right system that would deliver state-of-the-art technology, automation and STP and omni-channel capabilities.

Established firms can also benefit by re-visiting their existing infrastructure and evaluate their processes. The objective here is for firms to find the right software partner that would help them create added value to their business and clients thus elevating their business model to a new level and increasing their profit margins, while becoming more efficient and reducing cost!

Profile Software is among the leading FinTech solution providers developing award-winning products. Apart from the investment in the technology of our platforms to meet the market needs, clients select our solutions because of our team’s ability to deliver to their needs. It is not just the software that has to comply with the regulatory framework; it is also the peripherals to this that would create a competitive advantage for the organisation. For example, a Paris-based Digital bank selected our systems because we were able to deliver exactly to their requirements and not simply suggest what everybody else is using. This is a great compliment to our service.

Our solutions cover Investment and Wealth Management, Banking (both digital and traditional), as well as Alternative Finance requirements as we have been able to implement FinTech solutions to family offices and marketplace lending firms with great success to help them automate their business. The platforms are easy to use as standalone or integrate with existing systems in order to offer a seamless operational environment.

By Theodore N. Krintas, PhD, Executive Vice President, Profile Software

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