Enriching the Banking Experience with Data

Open banking is the future of banking — do you understand how it can affect your banking experience? In this episode of The Yield, Yieldstreet CFA Peter Kerr is joined by Frédérick Lavoie for a discussion on how data & technology are improving the consumer experience for bankers.  Frédérick is currently Chief Operations Officer at Flinks, which he co-founded in December 2016. Before starting Flinks, he spent several years working in online personal lending. Using innovative data technology, he brought to market competitive consumer financing offers that undercut payday lenders with lower interest rates. Trusted by hundreds of world-class companies, Flinks enables businesses to connect users’ bank accounts, enrich their data, and utilize it to deliver better products.

Key Takeaways:

[1:25] The aim at Flinks and what open banking can do for you.

[5:32] Enriching the data and simplifying a loan application.

[9:01] The future of fintech isn’t only found on the credit side.

[12:35] The power of creating a frictionless user experience.

[15:34] Flinks’ key market, main competitors, and digital banking trends that are here to stay.

[21:25] What can buy now/pay later offer consumers that credit cards can’t? 

[27:40] Scaling Flinks, navigating competitor offerings, and their ultimate exit strategy.

But what exactly is open banking, and what can it do for you? Open banking is an environment where consumers can consent to simply sharing their bank data to access the services of a company like Flinks. For example, if you want to move money to your family in Europe, you can download Wise, one of the global leading fintechs and in there, thanks to Flinks, select your bank and move your money to your recipient faster and cheaper than you would have with your bank. Simply put, this open banking experience removes the friction that tends to hold money up for days at a time, removes service fees and increases access across the board, resulting in both enriched data and simplified loan application experience, making the process smoother and quicker for consumers.

Of course, the future of fintech isn’t only found on the credit side. Buy now, pay later systems, and Credit Karma are strong players on the credit side, but there is plenty of innovation to be found on the asset management side as well. With insights into some of the biggest trends, Frédérick highlights compliance and future use cases that Flinks hopes to offer soon. And behind each of these use cases is the same common goal – to create a frictionless user experience.

It is clear that digital payments and digital banking are here to stay. There are several trends that people need to start taking more seriously, starting with the digital lending experience. It’s only a matter of time before gig entities are able to offer loans to their employees, and more challengers are integrating the complete experience into their products. Lending proliferation is also trending, and according to Frédérick, the buy now, pay later option ultimately offers some potentially attractive benefits to both consumers and lenders, especially in comparison to the options offered with credit cards. More options typically bring better outcomes, and each of these trends aim to bring more options to consumers, including the underbanked. 

Of course, the goal to truly protect the best interest of the consumer can’t only be solved with technology.  It also needs to be solved with regulation. We are on the verge of this regulatory framework becoming visible, if not yet enforced, bringing with it the biggest challenges and opportunities yet. Frédérick is confident that the lack of open banking limitations will only benefit consumers. Tune into this conversation to learn more about what the improved banking experience has to offer you today.

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