Financial Crime World

Banks Compete for Partnerships and Loyalty in Fintech Era

Moscow, Russia - In today’s rapidly changing financial landscape, banks are no longer just competing with each other to win customers’ business, but also partnering with non-financial players to create an ecosystem that surrounds the daily lives of their clients.

Webbankir: A Leading Example of Fintech Innovation

Webbankir, a leading online microfinance institution (MFI) in Russia, is a prime example of this trend. With over 1.5 million unique customers and a loan volume of over 2 billion rubles in 2017, Webbankir has implemented various Fintech elements to enhance its services.

  • Abandoned traditional call centers and introduced chatbots on popular messengers and online chats on its website.
  • Enabled loan issuance completely through messengers without the need for a website or application.

“We use pattern recognition when applying for an application, face recognition (passport, photo), text passport data, BI system from Microsoft, which realizes Big Data processing in real-time,” said a spokesperson for Webbankir. “We also employ machine learning and AI to analyze borrower applications and optimize scoring.”

Results of Fintech Innovation

Webbankir’s innovative approach has paid off, with the company experiencing a 130% increase in loan issuance over six months in 2017.

Penza: A Platform for Crowd Lending

Another example of Fintech innovation is Penenza, which offers crowd lending to small and medium-sized enterprises (SMEs). The platform uses online platforms, Big Data, machine learning, and AI to calculate risks for each type of loan.

According to Director of the Department of Financial Technologies at the Bank of Russia, A. V. Melnikova, Fintech is a key driver of innovation in the financial sector. Speaking at the “Fintech” conference earlier this year, she highlighted several world trends and challenges:

  • $28.5 billion invested in Fintech companies worldwide in 2017
  • 52% of financial organizations investing in AI-based solutions
  • 54% of financial organizations citing data storage and protection as a main regulatory barrier to innovation

The Bank of Russia’s Program for Fintech Development

Melnikova also emphasized the importance of developing flexible business models, expanding client experience, creating innovative financial products, reducing costs, and effectively managing data. The Bank of Russia’s program for the development of financial technologies for 2018-2020 is aligned with the country’s “Digital Economy” strategy. The program aims to synchronize Fintech innovation with regulatory requirements to create a more efficient and competitive financial sector.

Conclusion

As the financial landscape continues to evolve, it’s clear that banks must adapt to stay ahead of the curve. By partnering with non-financial players and embracing Fintech innovation, they can create an ecosystem that enhances customer experience and drives growth.