The Future of Finance: Digital Transformation and the Imperative for Financial Institutions

“The key to differentiation is a technology platform that enables: 1) ease of integration; 2) program (product) customization; and 3) speed to market on new product development and changes.”

In a recent Fintech Snark Tank article by Ron Shevlin, Ron highlights how embedded finance (specifically BaaS) platforms can differentiate themselves in a highly competitive landscape. Granted, Array isn’t in the BaaS space but the same principle rings true across any partner or vendor that a financial institution (FI) is evaluating.

Of the 3 paths to differentiation that Ron Shevlin laid out, Array touches on all of them.

1. Ease of integration: our embeddable components (in addition to our integration with Alkami) makes this a breeze.
2. Product customization: FIs can customize the look and feel of our components to reflect their branding.
3. Speed to market: this is what Array is all about! Our platform is built on the premise that we could help our clients with faster time-to-market for launching financial products.

 

Who is Array and how do we create value for financial institutions?

Credit monitoring and identity protection are just a few capabilities that Array’s FI clients can offer to their users. In a nutshell, we build popular consumer-facing financial products to be embedded within your digital banking platform that can typically be launched in just weeks (not months). Additionally, our solution was designed to accelerate strategic objectives, such as:

• Drive meaningful user engagement
• Generate non-interest income through new channels
• Promote financial wellness

 

Driving meaningful user engagement

We’ve seen powerful user engagement through our products. Our credit monitoring solution drives on average 2-3 monthly visits per user to our FIs’ digital experiences (Array client data, 2024). We are investing in products that we know will provide value to your users and to your organization.

 

Generate non-interest income through new channels

Our premium products include our identity protection features that FIs can charge for. In fact, the average user is willing to pay, on average, $5–$15 per month for this service as seen with popular identity solutions like Aura, LifeLock, and Identity Guard.

Bundled with our credit monitoring product, our Offers Engine can supercharge your marketing efforts with visibility into credit data that helps segment your audience. Leverage over 200+ credit data attributes (credit score, # of mortgages, # of bankrupt cities, etc.) to target the users you want for your products.

 

Promote financial wellness

All of our products are designed to help your customers and members with their financial well-being. As consumers, our personal financial ecosystems are composed of a multitude of data points: our credit scores, our risk of identity theft, how much we’re paying for subscriptions, how many lines of credit we have, etc. It’s not enough to offer just one piece of the puzzle to users. The more we can help users paint a picture of their financial well-being, the more set up for success they can be.

But is now the right time to be assessing Array (and other digital banking solutions)?

 

The digital adoption imperative

The finance industry’s digital transformation curve can be highlighted by a simple question: “Where do your customers or members go to check their credit scores?” If the answer is not your financial institution, it’s a wake-up call. 

Said another way, is your FI providing the baseline level of necessities to your audience?

Digital adoption means offering comprehensive financial management on your digital banking platform—credit score checks, identity protection, and more. The goal is to prevent the financial well-being of account holders from being fragmented across multiple platforms, making effective management for them a formidable challenge.

The reality is that many users are then turning to alternative solutions outside of your digital banking experience to meet their financial needs. These external providers have affiliate marketplace platforms that target your account holders with competing loan products, identity protection products, and more.

Array isn’t just a name for us. Our value position to the market is the ability to provide an array of the most popular consumer facing products to their users – easily and quickly.

 

How can financial institutions evaluate if a vendor or partner is right for their needs?

The questions any FI should be asking potential partners are:

1. What are the resources we’ll need to expend on this integration and will the juice be worth the squeeze?
2. Can I make this product or service look like my own without too much of a lift?
3. Is this going to accelerate my product roadmap and get us faster to market?
4. Do they have a vision for how consumer demands will evolve that will help me compete with fintechs and FIs alike?

 

Here’s one we’ll add to the list:

1. By partnering with this partner or vendor, will we be able to achieve our goals faster at a fraction of the cost than if we were to do this ourselves?

Evaluating tech partners with a surgical lens is crucial, especially at a time in which digital transformation is not just an advantage, but a necessity. 

 

Sorting through the noise: optionality in the digital age

Many of us face the overwhelming task of sorting through numerous vendor options inundating our inboxes, voicemails, and mailboxes. The abundance of choices often leads to analysis paralysis.

 

Step 1: Assessing knowledge currency

Begin by evaluating the currency of our knowledge. It’s probable that it’s been months, if not years, since we last checked on the latest offerings from vendors and partners. A simple online search of familiar vendors will yield a list of competitors. Dedicate a brief 20-minute session to explore these options, which can significantly inform our next steps.

 

Step 2: Avoiding decision-making with outdated information

It’s imperative to avoid basing decisions on outdated information. Vendors who may have lacked the necessary product features a couple of years ago may have since strengthened their offerings. Regularly updating our knowledge ensures we’re making informed decisions aligned with current market trends and vendor capabilities.

With the rise of innovative solutions, financial institutions have more options than ever to enhance their service offerings and operational efficiency. This optionality is crucial for FIs to stay competitive while meeting the evolving demands of tech-savvy consumers.

We started our Array journey with credit monitoring but have since expanded our offering set to so much more. We’re committed to growing with our FI clients by accelerating their product roadmap with the products users want. 

 

What will you see at Co:lab?

1. What credit monitoring can look like in your digital environment
2. How FIs can leverage our identity protection tools to generate non-interest income
3. What credit insights Offers Engine can offer you to level up your marketing efforts

 

Differentiating beyond the digital banking platform

In challenging economic times, financial institutions have a unique opportunity to build trust and foster meaningful relationships with their account holders through financial empowerment strategies. This includes going beyond traditional banking services to offer solutions that genuinely support account holders’ financial goals, such as credit monitoring and identity protection. 

We know that the digital transformation journey for financial institutions is complex but essential. By embracing digital adoption, exploring new digital solutions, and carefully selecting the right vendors, financial institutions can navigate the future with confidence. The key lies in prioritizing the customer or member’s needs at every step, ensuring that digital initiatives not only enhance operational efficiency but also empower users financially. This strategic approach will ensure that financial institutions remain indispensable to their account holders in the digital age.

Are you offering everything your customers or members are expecting within your digital banking platform? If not, come find us at Alkami Co:lab to learn more about elevating your users’ digital banking experience. See you soon!