The rise of NeoBanks and FinTechs has been eating away the market share of banks. Yet despite this trend, banks are still where the major financial life occurs – wages, loans, mortgages etc. But, with each new money saving innovation offered by FinTechs, banks lose their share of wallet as customers seek to push their spending power further. Cashback programmes offered by FinTechs are a case in point.
Why can’t major banks out innovate lean FinTechs?
It’s due to banking being highly regulated, which forces banks to spend the lion’s share of their time on compliance. Look at the FinTech unicorns, with their interconnected finance super apps – it’s no wonder banks can’t keep pace with that level of innovation.
But here’s the thing: not even the FinTech unicorns build everything in-house. It’s too much, despite innovation being central to their success.
If banks want to stay competitive, it’s time they rethink their innovation strategy.
And cashback programmes are low hanging fruit for banks wanting to keep their customers in their ecosystem.
Sniptech's cashback API can be integrated in less than two weeks and immediately deliver financial benefits to customers. We also take cashback for banks one step further by creating a seamless loyalty programme. We offer fully integrated cashback programmes linked to customer bank cards.
Banks can’t innovate at the pace of FinTech alone, but that doesn’t mean they can’t innovate their service and win-back the wallets of their customers.
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