How fintech in a box offers new opportunities for entrepreneurs (VB Live)
Presented by Envestnet | Yodlee
The fintech ecosystem has everything developers need to build the next generation of innovative, consumer-focused fintech. Join this VB Live event to learn what consumers are looking for, how to find out what they need before they know it, and more.
The past year and a half has had a huge impact on accelerating fintech solutions for both consumers and fintech companies. The Financial Services Delivery Landscape Has Completely Changed, Says Seb Taveau, Vice President of Developer Experience at Envestnet | Yodlee, from the need to go digital by default, to growing consumer concern about finances in an unpredictable world.
“Fintech companies need to deliver actionable elements with a highly personalized experience,” says Taveau. “And with changing risk models, from the gig economy to rising unemployment and quits, financial institutions and fintech startups need to rethink the way they do business.”
New opportunities in a new fintech ecosystem
The last five years have seen massive venture capital investments in the fintech ecosystem, boosting startups like Stripe that dominate the fintech world today. The most successful companies no longer just create applications, they develop platforms and integrated solutions for a growing ecosystem. Fintech has given rise to technologies for insurance, wealth, proptech, etc., which no longer require a banking partner to do business. Moreover, regulation has finally adapted to the world of digital finance that was unheard of 20 years ago, offering much more flexibility, he explains.
“Open finance, open bank, and open APIs mean that as a fintech entrepreneur, you no longer need to be an expert on financial regulations in every state, because the fintech ecosystem provides these fundamentals,” says Taveau. “Now you can focus on something other than being an expert in the basics of employment tax or mortgage regulation, and just creating a solution.”
And fintech companies need to think about 360° finance — going beyond payments or solutions built around bank accounts, checking accounts and credit cards. Consumers want an overview of their financial situation, from their 401k and IRA to the value of their real estate, the type of capital they have, and the most advantageous insurance, whether it is health, car or home.
“All of these issues involve some sort of fiduciary decision, and that’s where you have to look,” says Taveau. “All of these things that may not seem related to fintech or finance, at the end of the day there is a movement of value behind it. Consumers want a place that will give them this information, and they want it fast. »
With newly opened access to a wide range of data, ranging from industry insights to consumer trends and private and personal information, the tricky part for a fintech entrepreneur is determining what is relevant to their users – and use it correctly. The big challenge here is to manage compliance issues in each region where you operate. It is important to find the right partner not only for the immediate need, but also for the long term and on a large scale, if you want to continue to grow.
Fintech in a box gives developers an edge
Along with financial standards and regulations finally catching up with the real world, the cloud-based architecture creates a drastic improvement in data accessibility and control. Open finance, open banking and open APIs also create the opportunity for businesses to create a fully integrated platform – in other words, delivering fintech in a box.
Having the technology you need under the hood allows entrepreneurs to refocus on the customer experience, or what they’re expert at, versus the financial side, Taveau says. And because it’s powered by APIs, the technology will always be up to date.
“Today it’s not really about innovation anymore — it’s about integration,” he says. “For the fintech industry, this won’t be the biggest innovation or the biggest invention. It will be the greatest integration that will win all.
Thus, the challenge for new entrants in the field is multiple, ranging from the efficient integration of information and APIs on one side to the creation of new business models and new ways of analyzing financial information to create the extremely personalized experience that consumers expect – and in the middle, the full digital windfall.
“That’s why you see all these neobanks doing very well during the pandemic, because they can understand every side,” Taveau says. “They understand the digital aspect of providing a personalized experience. They understand how to use third-party partner APIs. They are not dragged down by old business models. They create new business models.
To learn more about the opportunities the new digital landscape is creating for entrepreneurs, how to overcome the challenges, and where to look for the right partners and solutions, don’t miss this VB Live event!
You will learn:
- How the fintech ecosystem is changing – and how fintech in a box is changing the landscape for developers
- The most important APIs to avoid reinventing the wheel
- How to ensure your data is accurate, reliable and diverse – and why it matters
- What are the fastest growing new fintech segments
- Ran HarpazChief Technology Officer, Hippo Insurance
- Joe MocerinoVice President of Engineering, HomeLight
- Seb Taveau, Vice President, Developer Experience, Envestnet | Yodlee
- Seth ColerModerator, VentureBeat