Are you planning on starting a non-banking financial company or already have one? This is a commendable move because such companies have become pivotal in the financial ecosystem. Offering an array of financial services, the NBFCs complement the traditional banking system well. However, note that operating without a full banking license means that you must partner with banking-as-a-service providers. Seamless integration is crucial in such an arrangement. Here are partnership tips for better services.
1. Choose the Right Partner
Start by being keen on the banking platform you partner with. When selecting from a list of top banking as a service APIs, ensure that the one you choose has a positive track record of collaborating with NBFCs. While at it, consider factors such as reputation and strategic alignment.
The platform you choose should have similar business goals for the partnership’s success. Additionally, it should meet and maintain operational requirements to avoid legal implications. You can identify such features from the banking platform’s description or mentions in social proof.
2. Focus on Technology Compatibility
Technology matters for seamless integration, hence the need to focus on it. Choose a banking partner whose technology is compatible with your system, for operational efficiency. With a compatible technology, data will flow smoothly between your NBFC and the banking-as-a-service partner. This will enhance your customer’s experience and save cost as you will avoid extensive modification to fit your system. When doing this, you should check the following:
- Application Programming Interface documentation
- Compatibility of the core banking system and other applications
- Scalability and flexibility of the technology
3. Ensure Robust Data Management Strategy
This arrangement comes with vast data from your customers. And with the rising data security concerns you should develop a robust data management strategy for seamless integration. This encompasses the process and technologies, besides policies that manage the data lifecycle.
In your strategy, ensure that you have data governance. You should also establish procedures and policies that help with effective and responsible data management. It’d be best if you also implement data quality management practices which include and aren’t limited to regular data cleaning and validation.
4. Streamline Operational Processes
Also, it’d be best to streamline the operational process between your company and the bank. This is important as it will improve efficiency by minimizing unnecessary steps in using your NBFC’s services.
Streamlining the processes ensures that workflows between the bank and your company. You can achieve this by mapping out your current processes involved in the integration. This requires documenting each step and identifying the roles to provide a clear understanding of existing workflows. You will then use technology to automate repetitive tasks, enhancing efficiency in your company.
5. Monitor and Optimize Continuously
You should monitor and optimize the system continuously for long-term success. This is important because regulations change and the top banking as a service APIs adjust for compliance.
Regularly checking such changes and reviewing the performance of the integrated system will help you identify areas that need improvement. Use feedback from employees and customers for better outcomes.
The banking industry is changing with the introduction of NBFCs. Such companies complement the services of traditional banks for the customers’ convenience. Running one calls for a partnership with a banking-as-a-service platform. Use the tips you have read here for a seamless banking integration.