Banks and Credit Unions typically operate within a closed ecosystem, in which customer information is kept secure and private. Banks maintain full control of the data and manage the inflows and outflows between customers and businesses, are reluctant to share it with third parties and are unfamiliar with innovative fintech companies.
1) Banks that utilize Virtual Hubs shorten time to market making the process more efficient.
2) Implementation expenses are reduced due to the use of a singular hub to connect with fintechs.
3) Access to a marketplace with hundreds of fintechs.
4) Standardized data processes make accessing data easier and faster.
5) A sandbox environment makes it possible to reduce the cost and risk banks undertake associated with interacting with 3rd parties.
6) Broader range of clients result in additional income streams for banks.
7) Reduce strategic and profitability risks.
8) Minimize operational complexity.