banking shouldn’t be complicated: the evolution of client-oriented services

Fintech and Marketplace member Genome shares its take on the rise of client-focused fintechs, plus 4 key strategies for e-⁠resident businesses to benefit

This guest post about the evolution of client-oriented services in banking was written by Genome, an e-⁠Residency Marketplace member and electronic money institution licensed in Lithuania, providing a variety of financial services online.

When hearing the word “bank,” what do you imagine? Is it a huge, slightly old-fashioned-looking building filled with white-collar workers and clients waiting in a queue? Or is it a more modern view of banking? One that - thanks to the rapid development of online banking and the fintech industry - sees such an image as no longer the standard.

The banking industry has come a long - sometimes painful - way to become more client-oriented. Yet, few people and businesses know how much easier it could be to manage their finances today. Let’s explore how this became possible and what some of the most beneficial banking services e-⁠resident business clients can get.

A significant factor that contributed to the emergence of client-oriented services was the Global Financial Crisis of 2008. How can this be? Well, the ripple effect of the Crisis influenced the banking industry in two ways:

• People’s trust in traditional, large-scale banks dwindled, making them look for alternative solutions;
• A need for better security tools and the implementation of new banking regulations led to deeper cooperation between financial institutions and tech companies.

At the same time, the world was experiencing steady, promising development of the internet, smartphones, and other digital technologies. People started switching to alternative, digital banking solutions.

These factors emboldened fintech companies to level the playfield with brick-and-mortar banks. But, to compete with the old guard, these emerging businesses needed to persuade people that they were different. Their answer - to be more client-oriented, offer more niche services, and present this package in a more accessible way.

The process was slow at first. But, between 2010 and 2014, the number of fintech companies founded by year grew drastically. For instance, in 2008, 76 fintech entities from the banking/capital markets emerged, while in 2012, the figure skyrocketed to 281 newly-created fintech startups.

As mentioned, fintech companies catered to different financial niches to diversify their client base. Over the years, fintech products developed in a myriad of directions. For example, payments, banking operations, financial and investment management, insurance (from P2P to commercial and other insurance operations), real estate, leasing and many more.

The total value of investments into such businesses also increased. From US$9 billion in 2010 to 216.8 billion in 2019, peaking at 239 billion in 2021.

Due to worldwide lockdowns, another push to more client-oriented services came in 2019-2020. Many traditional banks had to evolve in a short time span to keep up with times - as their customers required remote, digital services.

The amalgamation of all these factors brings us to the current banking situation.

How to benefit from the rise of client-oriented fintechs?

In 2023, you, as a customer, can benefit from client-oriented financial services if you just broaden your horizons. When it comes to opening a business banking account, e-⁠resident companies have three options: (1) Estonian traditional banks, (2) European traditional banks, or (3) European fintechs. The third option is especially recommended to e-⁠residents as there is a wide choice and accounts can be opened online.

So, how can e-⁠residents benefit from the wide choice of fintechs? We list here some key strategies that e-⁠resident businesses can take to make their banking experience much easier.

1. Don’t underestimate online providers. One of the best client-oriented services that has emerged is the ability to start a bank account online, even for business use. Gone are the days of spending a long time standing in queues and filling out countless documents. Now, all is done from the comfort of your home, office or wherever you, thanks to the power of the internet. Not only that, but all services can be easily accessed and managed online.
2. Different fintechs for different purposes. Remember how we mentioned that fintechs offer a variety of client banking services? Your business could benefit from this a lot. For instance, say you’ve had a business account at your local brick-and-mortar bank for years and need insurance. You might find that your bank is lacking in this department. But instead of changing banks, find a financial institution specializing in insurance programs - and you can keep your old account. The best part: such client-oriented services are niche. So, you will likely find a financial provider that caters specifically to the size of your business and the industry you work in.
3. Get better help from customer support. Another advantage that emerged as a result of competition between traditional banks and fintechs is their need to be as helpful to customers as possible. Because of that, financial providers now offer dedicated account managers for business account owners. Plus, multiple communication channels with a support team. Call them, email them, or write a message via social media and messengers.
4. Broad and niche business account services. The digitalization of bank tools allowed clients to easily access and better understand the ins and outs of their business accounts. As a result, they now have access to more extensive reports of their account activity.

At the same time, new features and services emerge to help business owners better navigate their companies. These include income tax calculators and management apps (for payroll, investment, treasury, etc.), multi-currency accounts (to store and receive payments in different currencies), and virtual cards (can be accessed within minutes after ordering).  

Fintechs like Genome provide financial services for companies and merchants entirely online. From multi-currency accounts to money transfers, Visa cards to merchant accounts, and payment pages to batch transfers. Genome also offers features to help businesses improve efficiency. For example, business account owners can securely invite their authorized employees to manage a business account together and share the workload. The employees get assigned roles and can perform various operations.

All-in-all, client-oriented services are taking over the financial industry. This creates many benefits for e-⁠resident businesses. Now is one of the best times to explore client banking services offered by fintechs. They could even improve your company’s performance.

About Genome

Genome is an Electronic Money Institution licensed and supervised by the Central Bank of Lithuania. It mainly provides financial services to eCommerce, transportation, insurance, utility, events, travel businesses, etc. We offer companies fast and smooth business account openings via the online application process.

With Genome, a business can get up to 15 accounts and store funds in euros, US dollars, or British pounds. The EMI provides secure tools that allow multiple employees to manage the business account simultaneously, with different access levels to certain features. Genome business wallets are a great way to store funds and spend them on corporate expenses when necessary. Companies can make SEPA and instant internal transfers and order virtual/physical debit cards to make payments online and during business trips. Starting a merchant account at Genome is simple for companies accepting payments for goods and services.