It’s September, and everyone’s buzzing about Apple’s new iPhone, with tech giants racing to outdo each other. This trend isn’t just in tech; it’s true for banks and other financial institutions too. The market moves fast. If you’re not keeping up, you’re falling behind. Take Buy Now, Pay Later (BNPL) as an example; what began as a small idea has rapidly become an essential financial product. The global BNPL (Buy Now, Pay Later) market is on track to generate a staggering $349.4 billion in gross merchandise value (GMV) by the end of 2023, with a projected compound annual growth rate of over 19% from 2023 to 2028, according to Global Data.
Financial institutions now face a critical decision: should they invest heavily in developing new products from scratch to keep up, or choose a smarter, sustainable solution that guarantees a solid return on investment and steady revenue growth?
The Challenge & Solution
Traditional product development cycles are often slow, resource-intensive, and risky. By the time a new product is ready to launch, market conditions may have shifted, or the product may no longer align with strategic objectives, leading to wasted resources and missed opportunities, ultimately eroding ROI. For banks, credit unions, and other FIs, the challenge is to develop products that not only meet immediate market demands but also support long-term goals. Whether it’s a loan product targeting a new customer segment, or a savings account designed to adjust to changing interest rates, the products introduced today must drive the institution’s continued growth and stability.
INFOPRO’s banking solutions address these challenges by prioritizing sustainability and leveraging a versatile Product Factory engine. This feature goes beyond quick product launches, emphasizing flexibility by allowing FIs to self-configure and deploy a wide range of financial products without the need for code modifications. This flexibility enables banks and FIs to support diverse loan products within a single system, from retail banking like personal loans and mortgages to corporate banking like working capital and invoice financing. The system also accommodates both Islamic and conventional products, ensuring adaptability and efficiency.
With readily available templates built from our extensive experience serving over 100 financial institutions across 32 countries over the past 37 years, banks can optimize their products to meet immediate market demands while driving lasting impact and ensuring a strong return on investment. This approach allows FIs to bring new products to market quickly and efficiently, without sacrificing quality, and optimizes resource allocation, freeing up capacity for investment in growth areas such as customer service, digital transformation, and market expansion.
A Case for Longevity: Real-World Success
Consider the example of a regional bank that used the Product Factory to develop a suite of personalized loan products designed to appeal to small business owners. By prioritizing long-term sustainability over speed to market, the bank was able to develop products that offered flexible terms and competitive interest rates. These products supported risk-based pricing, which benefits low-risk customers more, and relationship-based pricing, which benefits high-contributing customers more.
Over time, these products not only captured a significant share of the local small business market but also generated consistent revenue streams that contributed to the bank’s overall growth strategy. The result was not just a successful product launch but a long-term investment in the bank’s future.
The key to success here lies not just in innovation but in making decisions that drive sustainable growth and long-term ROI. INFOPRO’s Product Factory engine provides the tools and flexibility to create financial products that are both innovative and strategically aligned with your institution’s long-term goals.
Ready to Make Strategic, Long-Term Decisions?
If you’re ready to see how flexible INFOPRO’s core banking or lending solution can help your FIs to make decisions that benefit both the present and future. Reach out to us today and let’s start building a sustainable future together.