In the new connected economy, FinTechs and banks have new ways to serve clients.
Sorting through the pandemic’s digital shift’s achievements and failures will give fodder for MBA classes for years to come, but there are a few industries that have broken past old boundaries, leveraging payments to build durable new value propositions in payments experience.
Peggy Mangot, Head of FinTech Partnerships at J.P. Morgan Commercial Banking, told PYMNTS’ Karen Webster that, beyond the headlines of 2022, there are long-term trends in how FinTechs and banks will serve consumers and commercial customers.
“Everyone is looking at their 2023 roadmap and focusing on their most important activities, the ones that will have a significant customer impact, material revenue, or material expenditure savings,” Mangot said.
This includes electronic bill presentment and payment, which J.P. Morgan launched with Paymentus last year, as well as other comparable developments she’s keeping an eye on, such as embedded finance, which she describes as a “snowballing trend.”
In a rising-rate environment, business clients will emphasize cash management, liquidity management, and cash flow forecasting, and will want to collaborate on it.
FinTech collaborations, according to Mangot, are taking these trends to the next level, adding that consumer consumers have profited for years from data sharing provided by platforms such as MX and Plaid. We are now at the point where business customers will begin to gain from data sharing.
“We’re in the early phases of commercial data sharing,” Mangot explained. “Companies like Codat, for example, enable a commercial customer to share their [enterprise resource planning (ERP)] system, which may bring benefits in onboarding, credit underwriting, and cash management to a corporate customer.” That, I believe, will be a significant trend in 2023.”
