Customer-centricity, shown through exceptional user experiences, is vital for fintech success. While the industry recognizes the importance of seamless and intuitive customer interactions, it often underestimates the crucial role that employee experience plays in achieving this goal.

Fintechs are now heavily investing in AI to gauge credit risk, analyze customer behavior to identify customer needs, and to provide digital customer service. However, it is equally important to have the right technology in place to manage the employee experience – which directly affects the customer experience.

For fintech companies to deliver exceptional customer experiences, they must first ensure their employees have the tools and resources they need to perform their jobs effectively. This is where a robust IT Asset Management (ITAM) solution comes into play.

A good employee experience, facilitated by advanced ITAM solutions, can ensure employees efficiently manage assets, maintain security and compliance, and minimize downtime—all of which directly translate into a superior customer experience.

Some of the top outputs of a strong ITAM solution in enhancing the employee experience include:

1. Asset tracking and management: An ITAM solution allows employees to keep track of all hardware and software assets. This ensures that resources are available when needed, reducing frustration and inefficiencies caused by missing or outdated equipment.
2. Security and compliance: ITAM solutions help maintain security and compliance across all devices by ensuring authorized access to software with assigned roles.
3. Reduced downtime: An effective ITAM solution helps schedule preventive maintenance, ensuring that all equipment and devices are in optimal condition. When technical issues arise, an effective ITAM solution enables employees to create tickets on a help desk and escalate an incident for faster resolution, minimizing employee downtime. Features such as a Service Catalog can help employees self-cater to small technical concerns and access needed IT services spontaneously – streamlining the IT support process. This is crucial in a fast-paced industry where every minute counts.
4. Streamlined onboarding and offboarding: New employees can be quickly set up with the necessary tools and access, allowing them to hit the ground running. This reduces the time and cost associated with onboarding and training. Access can also easily be revoked and all equipment collected with a smooth offboarding process; critical to reducing asset loss, misplacement, ensuring data privacy and preventing unauthorized access.

By enhancing the employee experience, fintech companies can ensure that their workforce is productive, engaged, and capable of delivering high-quality service. This, in turn, leads to a better customer experience.

Connecting EX and CX: The path to fintech success

The relationship between employee experience and customer experience is symbiotic. A positive employee experience, supported by an efficient ITAM solution, leads to more motivated and capable employees.
These employees are better equipped to serve customers, providing timely and effective solutions to their needs.

When employees have a seamless experience managing technology and assets, they can focus more on delivering value to customers. For instance, a customer support representative who experiences minimal downtime due to IT issues can handle more inquiries and provide quicker resolutions, leading to higher customer satisfaction. Similarly, a financial advisor with access to up-to-date tools and information can offer more accurate and personalized advice.

As fintech continues to evolve, companies must adopt a holistic approach that prioritizes both customer and employee experiences. Ensuring that employees have the best possible experience through effective ITAM solutions is equally important.

By investing in EX, fintech companies can create a virtuous cycle where happy employees lead to happy customers, driving growth and success in the industry. The future of fintech lies in this balanced approach, where technology and human experience work hand in hand to deliver exceptional value.

Fintech success is not just about adopting the latest technologies but also about creating an environment where employees can thrive. A good employee experience translates into a good customer experience, and together, they form the foundation of a successful fintech company.

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Over the past three years, the team at Zeta has engaged with hundreds of leaders from over 50 card issuers across America. During these conversations, recurring questions emerged about managing portfolios on legacy systems, migrating to modern card programs and understanding the perspectives of other card executives. These themes are addressed in a comprehensive report by Zeta and Datos Insights titled “Card Program Evolution: Escaping the Legacy Card Tech Hamster Wheel,” where they conducted an in-depth study involving a dozen executives managing significant card programs.

Key Takeaways from the Report
The report defines four stages of card tech modernization, highlighting the evolution from legacy-dependent systems to fully modern infrastructures.

In Stage 1: Legacy Dependent, innovation is slow and reliant on processors, with customer experience (CX) limited to banker interactions or basic mobile apps. Data access is poor and slow, and costs are high for both service and maintenance. Transitioning to Stage 2 is achievable through incremental technological changes, but creating a significant impact requires more extensive modernization.

Stage 2: Legacy with APIs or Sidecar Programs sees slightly faster innovation, though control over the roadmap remains limited. CX lags behind leading programs, data access is still limited and costs are reduced but may require parallel systems. Remaining in Stage 2 exposes issuers to significant compliance and regulatory risks.

In Stage 3: Modernized with Some Legacy, innovation occurs mostly in-house, except where legacy-dependent. CX can be personalized with some AI capabilities, real-time data access is available but limited in scope and costs are lower except for legacy maintenance and changes. Moving into this stage is particularly challenging due to the complexity of legacy systems.

Stage 4: Fully Modern represents a state where almost all innovation and changes are handled in-house. CX is highly personalized and predictive, leveraging maximized AI capabilities. Real-time data access is available across internal and external streams, and costs for CX and maintenance are low with simpler billing structures. Access to data is crucial for transformation, which is difficult to achieve without modern technology.

Transitioning through these stages reveals that AI has the potential to be transformative, requiring platforms that support real-time data access and rapid iteration of customer experiences. Breaking down the shift to modernization into stages is recommended for most financial institutions since extensive changes are required across various organizational areas.

Challenges and Risks of Legacy Platforms
Bankers face several challenges and limitations to their card programs when they are stuck in their legacy systems. There are six primary risks associated with maintaining legacy platforms. Consumers today need their demands met with key features that provide transparency, control, immediacy and intuitive interactions from their financial institutions. Another risk of staying in a legacy system is the decline of COBOL programmers, which requires very complex coding and poses significant risks for reacting to regulations and managing portfolios. With the rise of AI, there will be new demands for more flexible platforms. Additionally, real-time processing has already begun replacing batch processing as the default. Branch networks have become less competitive, which means digital incumbents are increasingly challenging traditional institutions. Lastly, regulatory changes add complexity and risk, diverting time from innovation.

Functionalities of Next-Gen Processing Platforms
Next-generation processing platforms offer several key functionalities that address these challenges. Cloud-native solutions provide significant advantages over cloud-based ones. An API-first approach ensures easier implementation and faster development. Real-time data access is ranked as the top benefit by bankers. Low-code/no-code design enables staff to develop solutions without technical expertise, while a microservices architecture increases flexibility, scale, and speed to market. Modern user interfaces reduce training needs with intuitive navigation, and modern programming languages address the shortage of COBOL programmers. Broad card program controls allow issuers to make in-house changes, minimizing change requests and enhancing control over the product roadmap.

Initiate the Modernization Journey
Modernizing card programs is a complex but necessary journey for financial institutions to remain competitive and meet evolving consumer demands.
  These four stages of modernization serve as a roadmap for issuers to navigate this transformation, leveraging modern technology to enhance customer experiences, improve efficiency and stay ahead in a rapidly changing landscape.

Staying at the initial stages poses significant risks, including the inability to handle diverse payment types and compliance challenges. The frustration of migrating between legacy platforms and the limitations they impose underscore the need for comprehensive modernization. But as financial institutions move through this journey, each stage unlocks significant benefits.

Fintechs are using modern issuance platforms to innovate by reimagining cards as products, business models and data engagement layers. Additionally, banks in the corporate card space are embracing modern technology to stay competitive, allowing fintechs to develop capabilities around their cards.
This decentralized innovation enables rapid iteration and interaction with other systems, providing significant benefits.

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Empathy and data reshape digital banking, driving personalization and customer loyalty amidst tech evolution.

With UK Finance recently sharing that a staggering 93% of card transactions in the UK are contactless payments, it’s clear that a robust digital payment infrastructure is no longer a luxury for merchants; it’s a necessity. But what happens when the chip and pin devices we’re familiar with malfunction? 

We all remember the chaos caused by recent tech outages at major retailers like Tesco, Sainsbury’s and McDonald’s, with limited payment options frustrating customers and in some cases, forcing temporary closures. These outages highlight a critical vulnerability: a reliance on traditional payment systems which can leave businesses exposed to significant financial losses. Downtime caused by malfunctioning hardware translates to lost sales and potential reputational damage, which can take years to be resolved.

This is where software point of sale (SoftPoS) shines, offering a simple, fast, and more convenient way to accept payments using the NFC-enabled smartphones or tablets we have in our pockets. SoftPoS is set to play a pivotal role in shaping the future payments landscape, but by offering a suitable backup solution for when hardware payments fail businesses, it truly carves out a niche for itself in the evolving world of payments.

The importance of having an alternative solution

The IT disruptions faced by a number of prominent UK businesses earlier in the year serve as a stark reminder that existing systems are not infallible. These businesses face a pressing decision; invest in alternative payment methods to safeguard the customer experience and revenue of the business, or continue to provide a traditional payment solution and risk facing the costly disruptions associated with unexpected tech failures.

While traditional point-of-sale systems have served as the backbone of payment processing for decades, they are not without their vulnerabilities. Security breaches involving compromised card data are a persistent concern for businesses and consumers alike. 

Skimming devices attached to card readers can steal sensitive information during transactions. SoftPoS technology, by leveraging secure mobile device technology and tokenisation of sensitive data, can potentially mitigate these risks. Additionally, cloud-based security features and regular software updates offered by SoftPoS providers can further enhance the overall security of a business’s payment infrastructure.

SoftPoS solutions can serve as a safety net in situations where the primary card machine breaks down, whether due to a malfunction, battery issues, or technical problems that are beyond the immediate expertise of employees. By having an implemented SoftPoS solution, businesses can avoid lost sales and maintain customer trust during outages.

Cost-effective maintenance

Traditional payment methods, while familiar, often rely on expensive hardware that requires ongoing maintenance. This can be costly, and hardware malfunctions can lead to additional service call fees and downtime. 

SoftPoS, on the other hand, offers a more cost-effective solution. Updates can be delivered online, minimising downtime and making it perfect for fast-paced environments. Additionally, SoftPoS eliminates the need for costly terminals, streamlining the payment process and reducing operational costs associated with payment processing and reconciliation. 

Established companies can realise significant savings by implementing SoftPoS across their stores, removing the sole reliance on expensive point-of-sale hardware at each location. This frees up capital for other business investments and simplifies the management of their payment infrastructure.

A flexible future for omnichannel businesses

While traditional payment methods struggle to adapt to diverse business models, SoftPoS thrives. Pop-up shops, service providers, and smaller retailers can leverage existing smartphones and tablets, eliminating the need for dedicated hardware. This flexibility, coupled with its ease of setup, makes SoftPoS a convenient and cost-effective solution for businesses of all sizes.

Looking ahead, SoftPoS holds immense potential to transform the future of payments. As consumer preferences shift towards contactless transactions and mobile wallets, SoftPoS is well-positioned to become a primary payment method. Its inherent flexibility can cater to a wide range of businesses, from established retail chains to on-the-go operations and service providers. 

Furthermore, seamless integration with loyalty programs and real-time sales data empower businesses to optimise operations and enhance customer engagement. With continuous advancements in mobile technology and growing consumer demand for secure and convenient payments, SoftPoS is poised to play a central role in shaping the future of secure and adaptable payment solutions across all industries.

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Find out how banks can reduce tech debt and embrace new technologies.