Multibanking is an opportunity for banks to strengthen their position as the conduit for all their customers’ finances. In the EU, PSD2 is essential as a regulatory requirement and elsewhere, equivalent regulations mean that banks must now participate in the scheme that helps people getting a more holistic view of their finances. While there is the threat of losing brand equity and loyalty, there is a much greater opportunity to add value and make use of the comprehensive customer data available to banks. The opportunity is twofold – this information can be used to upsell relevant additional services and the provision of a comprehensive financial dashboard will be highly valued by customers, enhancing brand loyalty and engagement.
What does multibanking mean for customers?
The primary use cases for multibanking will be in areas such as account aggregation and transferring funds between accounts. While these may seem like simple first building blocks, it is from here that the facility will become a commodity. How simply banks present this information, the added convenience and additional services will become a differentiator in the market, and this is how banks can use multibanking to their advantage. Additional services and features that add value – offering mortgages based on a complete financial overview or upselling a savings account with better interest rates, for example – will make all the difference. How banks deliver this, and how successful it will be, will be based on the unique DNA of each bank and their appetite for innovation.
"myPiggy": multibanking in action
CREALOGIX has been working with the start-up VR Family Finance GmbH since 2019. The organisation has a background with Volks- and Raiffeisenbank and were keen to support families and young people with smart financial solutions and services. The "myPiggy" concept was designed for children to give them early awareness and understanding of finances and gives any aggregated accounts a tangible identity in the form of a piggy bank. This comprehensive SaaS solution, powered by CREALOGIX Multibanking Client for Retail, enables any application to access the accounts of children with a cross-institutional multibanking service of unprecedented depth. Facilitated by PSD2 XS2A, the project paves the way for a digital banking future.
Finding a niche that matches customer requirements
The success of the "myPiggy" project isn’t just down to innovation; given their background with Volks- and Raiffeisenbank, VR Family Finance GmbH have always seen themselves as facilitators. Their understanding in this area meant that they were uniquely qualified to deliver an innovative multibanking solution that solved a requirement in the market. The unique offering provides families with new ways to teach their children about money and it stands out in an addressable market niche. Of course, not every bank will want to follow this path, but the model demonstrates that it’s possible to exploit a bank’s existing strengths to expand and gain new customers through a strategic application of multibanking.
Supporting the future of multibanking
Beyond the basic facilities of account aggregation, there are numerous market applications for multibanking that will benefit customers and provide banks with new opportunities. At CREALOGIX we believe this is one of the most exciting areas of digital banking. Such projects can be challenging – in the case of VR Family Finance GmbH, we worked not only on software and hardware, but also on establishing new partnerships to deliver a successful solution. However, the challenges are outweighed by the rewards. The success of the project is a clear call to action for banks to explore how they can make the most of multibanking in their organisation, and we are looking forward to working with more clients to support them in this area.
Download also our use case with more details on multibanking and the "myPiggy" success story.