There is rising skepticism concerning traditional banking infrastructure, some of which has been around for quite a while. With new emerging payment systems, there is looming doubt over whether such a banking infrastructure will be able to perform properly on the back end. Banking has seen much evolution over time, and is no longer about just deposits and withdrawals. The industry constantly demands more actionable insights from transaction information. This is where banking infrastructures are really feeling the pressure .
A number of innovative fintech start-ups have come to the rescue by creating platforms that boost the existing banking infrastructure or provide simple alternative improvements. Their solutions are fulfilling the demand for services like data analytics, fraud detection, etc., and are simultaneously keeping up with next generation compliance expectations. Here are 5 noteworthy start-ups to keep an eye on:
Bank Sonar provides one of the world’s most intuitive account monitoring softwares for businesses. A major offering of the company is account “anti-fraud” protection. The following illustration highlights Bank Sonar’s operations:
DemystData helps financial institutions optimize customer interactions through improved access to information. The company brings together the best available online, social, and internal company data to create more comprehensive profiles and refined customer predictions. This happens in real time and is delivered via an API. DemystData is already processing more than 30 million profiles for financial clients, which include some of the largest global P2P lenders in the U.S. and U.K., as well as leading banks in the Asia-Pacific region. The company offers a number of data packages such as email intelligence, which involves a real time email address-based personalization engine returning rich descriptive data attributes about customers.
Plaid leverages its banking infrastructure integration technology to offer two primary products that allow users and developers to effortlessly interact with financial institutions. These two products are Plaid Connect and Plaid ACH Auth. Plaid Connect collects transaction data from credit, debit, checking, savings, and other accounts, then displays it in a usable format. This helps in matching the merchant name, category, location, and address for each purchase made. Plaid Auth helps developers authorize and set up ACH payments in minimal time using credentials which users are already aware of. With Plaid Auth, developers also get the power to verify ownership and check balances.
Spout lets developers integrate with more than 710 banks, vendors, and financial institutions. Spout’s RESTful API allows secure development across iOS, Android, and Web applications, boasting impressive bank level encryption. Spout monitors transaction information from the individual charges to vendors, categories, and even account information. Spout has developed an information management mechanism that allows banking customers the ultimate portability for their data. Spout allows consumers to control their data, untethering them from traditional banks and service providers.
Standard Treasury has developed an API banking platform as part of its commercial banking infrastructure to power financial applications. The company’s programmatic banking platform underlies the application layer of banking. With the company’s core banking system built on an API-first design, every operation in the bank is controlled by a secured rest API, with a micro-services architecture on the back end. The UK based company is applying to become an independent bank. It is currently working with the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) towards authorization.