Traditional Banks Need to Wake Up to Digital Innovations. Here are 11 Leaders

There's a lot of talk about bringing advanced technology into banking. But it's not just about developing the right software –– it’s about implementing technology in a way that improves the customer experience. Past failures of digital innovation did not sufficiently bridge the gap between potential for innovation and practical application. This list of 11 leaders digital banking innovation are different. 

They are taking risks in the consumer banking space. Through unique in-house solutions or by partnering with other providers, they have created new ways to think about banking. 

With these brands leading the way, digital banking is rapidly becoming accepted around the globe. Consumers can get credit, open accounts, invest for the future, send payments, even withdraw cash –– all online, in a technologically advanced, secure environment. 

SunTec Xelerate

SunTec created an innovative product to facilitate open banking. The company has gone beyond making it easier for banks to share their APIs with partners. Xelerate, SunTec's product, offers expediency in managing open banking partner relationships. 

In addition, it provides access to dynamic insight into API performance and new avenues to monetize new and existing customer portfolios. In essence, Xelerate isn't just about open banking –– it's about getting the most out of open banking. 

nCino 

nCino has a new solution for banks who want to modernize their entire customer experience. nCino's bank operating system is a cloud-based platform that offers a cross-section of services for commercial, retail, and small business sectors. 

It provides an end-to-end solution for banks to provide excellent in customer-facing functions –– deposits, loans, onboarding –– and internal business operations. Banks can focus on what they do best –– the money –– while nCino handles the platform.

ThinkMoney & OutSystems

ThinkMoney is a banking solution that helps the underbanked -- those who have limited access to financial products but need access to economic ecosystems. In addition to providing account access, ThinkMoney offers built-in budgeting and financial education opportunities.

Their partnership with OutSystems, a low-code provider, allows ThinkMoney to quickly create new online applications in-house, without the added time constraints of a protracted technical development process. That means they can adapt more quickly to changing customer needs and offer new relevant products. 

Divido

Divido has brought white labeling to the online finance sector. White label is the term for a product that brands license and package as their own and sell on the consumer market. Lenders who license Divido get an end-to-end credit origination platform that works under the umbrella of their brand, all online and across channels. There is no need for lenders to create the online customer journey from scratch –– they can just add their branding to the functionality that Divido provides. 

Bank of America – Enterprise Data Indexing Engine (EDIE)

Bank of America (BAC) has used natural language processing, artificial intelligence and machine learning to create technology that allows the bank to quickly adapt to changing regulatory requirements. What once took human eyes hours to review now takes only seconds to process, using EDIE.

Although this is largely hidden from the retail banking customer's eyes, it greatly increases the rate at which Bank of America can connect its policies to rapidly changing laws around the world –– which inevitably affects the experience of the everyday consumer.  

HSBC – Voltron 

Along with other banking institutions, HSBC (HSBC) is helping to make the vision of a blockchain-based transaction system a reality. They are partly achieving that objective through the use of the Voltron platform, which last year facilitated a letter of credit for a shipment of materials between mainland China and Hong Kong. The letter of credit completed in 24 hours using Voltron, compared to the paper-based standard which typically takes five to 10 days.

Jibun Bank Corporation – Smartphone Debit Card 

Jibun is already a finance innovator, as a mobile-only bank based in Japan. There are no physical branches and customers transact using only their smartphones. Jibun recently introduced a virtual debit card that allows for cash access from some ATMs using a smartphone scan –– no plastic card to slide into the machine. This functionality appeals to the digital-only consumer, a growing sector of banking clients, and is especially popular among younger generations. 

Nuapay

Nuapay is an account-to-account payment provider. The company makes it possible for consumers to pay companies directly from their bank account. There's no need to use a third party service like Paypal or a credit card. In addition to facilitating customer-initiated payments, the company also makes it easier for merchants to automatically withdraw funds from customer accounts, with proper authorization. 

ACI Worldwide – UP Real-Time Payments

ACI Worldwide works with banks to provide real-time payment solutions. Unlike other payment solutions, ACI focuses on the unique aspects of the real-time payment environment. It helps banks to elevate customer offerings. Among those are global payments and a truly seamless banking experience. Real-time global payments are in many ways the ideal when it comes to digital transactions, and should soon be not only commonplace, but the norm –– nationwide in the U.S. and around the world. 

DPR 

DPR is another core banking provider that partners with lenders to offer mortgages, loans, and savings products in a digital-only environment. The company helps banks to innovate on behalf of consumers, in the process attracting a new generation of banking clients. The solution empowers financial services to meet the needs of consumers who choose not to visit branches or utilize call centers, as they do all their business online. 

Avanza & GigaSpaces  

The Swedish bank Avanza offers a digital, highly personalized banking experience. Their innovation is largely due to their partnership with GigaSpaces, an in-memory platform. As the volume of Avanza's clients increases, GigaSpaces has the agility to help them to scale and to continue to offer new, specialized, and relevant banking products to each individual customer.

Lightico

Lightico empowers businesses to enable their end-users to complete the entire customer journey on a streamlined mobile interface. Agents send customers a text message link, which takes them to a secured environment where they can easily fill out pre-populated forms, upload documents, share and have their ID verified, provide an e-Signature, and perform other tasks. Lightico’s platform eliminates the need for physical paperwork and visits to physical locations, dramatically boosting completion rates and increasing turnaround time.

Why digital banking innovation is important right now

Clearly, these brands show that the old ways of banking can evolve. As the generation of digital natives grows up, they want easy access to better, more digital, financial options. With brands like these leading the charge, they won't have to look far for groundbreaking choices.