Cross River Bank Is Driving Banking as a Service Through Fintech Partnerships
The world of banking is going through a massive paradigm shift, of that there is little doubt.
As bank branches continue to close and the shift to digital banking becomes ever more ubiquitous, there is a strong need for innovative solutions which incorporate the very latest technology from the world of digital transformation.
However, it is not always convenient, or even possible, for bank brands to develop and release their own proprietary technology. To do so often requires resolute teams of coders, software developers, designers, artists, and more working together to bring these innovative technologies to life – something not every brand has the resources to facilitate.
In these situations, we often see brands turning to outside help to provide the technological solutions they require. This has led to the rapid expansion of independent fintech providers ready and willing to partner with bank brands to bring their technology solutions to a wider audience.
Cross River Bank
One banking brand which has emerged in recent years and established itself as a serious disruptor within the industry is Cross River Bank.
An American state-chartered commercial banking corporation, headquartered in Fort Lee, New Jersey, Cross River Bank has quickly risen to prominence thanks to its philosophy of providing banking as a service and its enthusiasm for fintech partnerships.
"We view ourselves as a fast mover, a nimble organization who can adapt to the realities on the ground, both on the technology side and the compliance side," said Cross River Bank Founder and CEO, Gilles Gade. "And I think those go really hand in hand. You can’t be in the financial space, even if it’s called fintech, at the end of the day if you cannot be nimble on technology development to answer the demands of our fintech partners who want to be very fast-paced, fast moving, because they do themselves have to answer to consumers and small-business aspirations."
Banking as a Service (BaaS) is a way for banks to operate by providing their products and services through a portfolio of third-party distributers – packaging together banking products from multiple sources rather than operating them themselves. Think how a brand such as Uber doesn’t (technically) run any cabs, but instead brings together an army of (technically) independent operators to provide its core service and you’ll have the general idea.
Cross River Bank leverages this emerging and growing trend by developing its own tech solutions, while simultaneously seeking out the absolute best fintech providers and using their technology to provide its ever-expanding range of services.
"I think the most important thing that we provide is flexibility," said Head of Fintech Banking, Adam Goller. "So, it’s not just the products that we offer and the way we offer them the API technology, but it’s the flexibility of knowing that if you have a specific need that is not accommodated by the current technology, we can build it. That ability to adapt and to adjust the technology based on the client demand I think is what separates us, aside from the fact that, again, when you’re talking to a fintech company and you speak their language, which is technology, then it goes a long way."
Fintech
One recent example of an intelligent fintech partnerships Cross River Bank have established include teaming up with location-based payments platform provider, PayTile.
PayTile is one of the first ever peer-to-peer (P2P) payment platforms which uses geo-location data to facilitate safe and private financial transactions between users without sharing their personal information. The PayTile solution is designed to replace cash in situations where physical money would be the norm, such as when tipping a valet, making a purchase from a local seller, etc.
PayTile is also launching a unique and innovative new piece of technology called Money Drop. Without the need for any hardware, PayTile can digitally place cash or other virtual goods at a specific location for users to collect and redeem. This could be used, for example, to draw a crown through incentives, such as to sell discounted tickets or bring people to the opening of a brick-and-mortar location.
Anu and the team at PayTile are revolutionizing peer-to-peer payments," said Gade. "By partnering with innovative companies like PayTile, Cross River creates real time solutions to empower consumers and their finances."
Final Thoughts
Retail bank brands should take lessons from Cross River Bank and start looking for innovative ways to bring the latest fintech into their physical branch operations. If brick-and-mortar locations are able to offer unique tech-based experiences which customers cannot get elsewhere, they stand a far better chance of bringing them through their doors.
Bringing in Outside Expertise: Best Practices for Partnering with Fintechs is set to be a keynote topic at Future Branches Boston 2022, taking place in July at Westin Copley Place, Boston, MA.
Download the agenda today for more information and insights.