Today, financial services apps are more connected and complex. Account holders expect to to open their phone and apply for a loan or order a Western Union cash transfer directly from the same interface (aka embedded finance). At the same time, they also want a more personalized experience. Knowing their preferences and using them to engage with account holders is a powerful way to create new connections and experiences. Third-party integrations can help you achieve this.

How third party integrations improve the digital banking experience

From a user perspective, mobile banking software apps are designed to be easy to use. But on the backend, they can be more complex. Typically, apps are tied to databases to store user info and include in-app notifications and updates, geolocation and many other features. It takes time for a team to develop an application that offers easy-to-use services that interate with other platforms and still maintain high standards of security and privacy. Developing new features, including in-app notifications, to an already existing app requires time to scope out requirements, development, testing and finally production. Since most mobile app users demand new features much more quickly than a financial institution can develop them, and because they typically don’t have the in-house tech talent to create these mobile services, they typically turn to third-party integrations that have done the work for them.

Integrating a third party means a financial institution does not have to redesign the wheel, so to speak. It allows existing banking software to easily add the features and tools that otherwise take time and funding to develop, test and refine in-house. Using a third-party integration gives financial institutions of any size the ability to compete for new customers.

FIs now widely accept third-party integration because of their worthy benefits:

•          They quicken production, often by months or even years.

•          They reduce cost and improve revenue.

•          They enable new features to be added to an app efficiently.

•          They develop and nurture new account holders.

•          They introduce innovation.

Third party integrations, especially for community FIs, also provide long-term solutions. For example, it helps FIs remain agile to achieve innovative advances in digital banking. The digital transformation for banks and credit unions of all sizes is not one leap, but a constant state of evolving motion.

FIs must remain competitive and satisfy account holders of all ages and experience levels. They must be able to adapt their technologies easily and swiftly. Third-party fintech integration focuses on constantly seeking new technology innovation for you. It seamlessly integrates into existing banking software apps. That pushes banking platforms into a state of constant evolution. As a result, the platforms keep account holders satisfied and excited about the FI brand they have grown to rely on for the digital banking services they enjoy and need.

Below are a few ways to use third-party integrations:

•          An account-opening solution that meets an FI’s compliance requirements.

•          Propagating the digital account into all internal bank systems:

–         Digital banking platform.

–         Customer relationship management (CRM) system.

–         Fraud monitoring systems.

•          Partnering with relevant third-party providers that further develop services, such as enhancing a customer engagement platform with in-app notifications.

•          Complying with risk management.

Ensuring the safety of integrations into your banking software

As with any business venture or partnership, there is risk involved. But FIs can ensure safety when integrating by mitigating vendor risks and increasing security. FIs can take a few measures, such as:

•          Using contracts with third parties that identify risks and clarify liability and regulatory compliance.

•          Establishing real-time incident response for continuous monitoring.

•          Enabling two-factor authentication and enhanced identity verification.

•          Collecting data for audits, use of alerts and notifications, and detailed reports.

Conclusion

In order to stay relevant in an increasingly competitive landscape, financial institutions must quickly adapt their digital banking technology to meet the needs of their account holders or risk losing them. That said, it’s easier said than done. Using third-party integrations to leverage new and exciting features into a mobile banking app (or desktop website) can help banks and credit unions keep up with demand without draining their time or resources. If you’re a financial institution tasked with updating your digital banking services, and aren’t using third parties to help, now may be time to reconsider that decision.

Looking to add more personalization to your account holder experience but don’t have the time or resources to figure out how to do it? Larky can help. We provide customized push notification campaigns delivered directly through the mobile banking app. With 5x more engagement than traditional methods, our technology seamlessly integrates into your existing app so all you have to do is turn it on. Contact us to learn more or schedule a quick demo to see it in action for yourself!