How Banks Can Defend Their Place in the Payments Value Chain
Banks can actively compete with large banks and fintechs that have been encroaching on their business.
Banks and credit unions are the hub of consumer and business money management activity for SMB’s. However, the emergence of fintech disruptors, such as Stripe and Square, have changed that landscape and made it considerably more challenging for banks to compete and thrive.
For example, fintechs such as Square have not only intruded on banks payment and treasury management territory, but they have also begun offering their own credit cards or lending services with enticing rates, further eating up banks’ market share. These new entrants are also disrupting the space with new technologies, such as online payment platforms, mobile payment apps, person-to-person (P2P) payments and payday apps, taking even more of the corner of the industry that banks once dominated.
The good news is that banks don’t have to fall victim to these trends. Implementing the right technology with the right partner can give banks the services, speed and agility to offer one-stop banking and payment processing needed to remain competitive and defend their place in the value chain.
How the right partner can help
As a total payment solution provider, NMI provides a suite of powerful payment solutions to banks hoping to compete and establish stickier relationships with small business customers. Some of these solutions are as follows:
A Change in Mindset
In order for banks to stay competitive in providing services to their valuable small business customers, banks must act now. Change and disruption will only accelerate. Banks’ ability to maintain market share will depend upon their ability to provide the competitive products and services that small business customers expect. NMI’s robust white-label payment solution set arms banks with the technology necessary for them to provide innovative payment solutions to protect their customer base.