When it comes to financial products, whoever shows up late in the race will likely fail if customers are enjoying the services of a competitor in both good times and bad. Simply put, sinking tons of money in a new customised product or adjusting it to changing market conditions will take a long time to come to fruition.
In such a competitive environment, those who build their business on a true SaaS banking platform stand the best chances of finishing their own race however they see fit. Being able to launch products and services faster translates into quicker time to revenue, which itself translates into even greater revenue generation and at earlier breakeven points.
Right for fintechs
The right banking platform enables fintechs to better design product roadmaps and launch them to market more efficiently, adapting them as needed with the help of carefully selected ecosystem partners. As competition grows and customer expectations continue to evolve, taking a composable approach has proven to be the path of choice for traditional banks, but new entrants looking to achieve scalability and agility in the market can do likewise from day one.
Additionally, many have plans to expand geographically, but to succeed they must face not only business and economic challenges but also challenges stemming from the numerous social and regulatory realities present in other countries.
This area is another space where the flexibility of the SaaS core shines, as it allows for staggered organic growth aligned with the needs of the business. It empowers customers to launch complementary products in minutes, achieving efficient cross-selling strategies. It also enables the launch of new products in different territories, simply by adjusting to new local conditions.
Ongoing enhancements & predictability
A cloud banking platform offers numerous benefits, and one significant advantage is the elimination of maintenance costs. Unlike traditional systems that require extensive hardware infrastructure and ongoing maintenance expenses, SaaS platforms operate in a virtual environment.
This means that banks and financial institutions can avoid the costs associated with purchasing, maintaining, and upgrading physical servers and systems. Instead, updates and upgrades are seamlessly implemented overnight at no cost to the financial institution or its customers.
If fintechs have issues accurately estimating their deployment timeframes and project budgets, they will likely overshoot their revenue projections as a result. The SaaS model allows for more predictability in this area. That’s why having the support of experienced ecosystem partners ultimately provides more fuel for fintechs to push forward and remain resilient and at lower costs, a double win in murky economic times. Composable architecture combines and recombines a variety of functions, allowing institutions to expand their platforms by bringing in other providers that can complement their offerings.
Traditional banks are becoming increasingly digital themselves and compete on top of robust structures that can help them retain their power. Fintechs can only navigate the market's economic challenges successfully if they can find a way to differentiate through ongoing enhancements that can boost their growth. Finding the right partner can help them access the best platforms to enhance their operations and ensure that they are strong enough to manoeuvre current economic woes.
There are many benefits to a pure SaaS core, like Mambu, that are found nowhere else. Our customers assemble the parts of the business they need from different vendors to create an ecosystem of trusted partners that together – linked in real time by APIs – can provide exactly the types of services that consumers want and need.