The future of banking can be better for customers and banks 

Two men sailing thinking about banking.

Fintechs like Save are transforming the banking industry, but unique to our “Savetech” is the appeal for both banks and customers.  

Banking-as-a-service, known as “BaaS,” has flourished thanks to technological advancements and regulatory changes, and we’re thankful for the BaaS partnerships that we have garnered because it allows us to bring quality banking alternatives to the marketplace.    

“The days of going into a bank to open an account are gone thanks to BaaS,” said Michael Nelskyla, Founder and CEO of Save. “Customers can open a Save account entirely on their own within minutes and start earning more on their money. However, that’s not enough, as today’s customers are also looking for an overall better value proposition, given where inflation and interest rates are.” 

Take our Market Savings as an example, customers’ deposits are FDIC-insured†, investments made on their behalf provide a higher market-driven variable APY*, and the customers’ benefit from long-term capital gains tax2. Having a more attractive value proposition for customers also provides a host of benefits for the banks, starting with stable core deposits which helps banks strengthen their financial position and minimize regulatory capital costs.   

Another benefit that is provided to banks by the Market Savings platform is one of matching the bank with customers who align themselves with the bank more closely. If the bank attracts customers who are investment-focused and look for long-term outcomes, then such customers will stay for the long term. In addition, such customers tend to become strong brand ambassadors and promoters of the bank with effective referral rates that are higher than 20%.   

An additional appeal for banks partnering with Save is in the reduction of cost, specifically in customer acquisition and lower operational and fraud costs. Jointly these contribute to a minimum of 30% cost reduction for customer acquisition. This reduction in cost is critical in today’s current environment with high interest rates going to customers and as Bloomberg reports, it’s rarely been this expensive to be a bank.  

“An analysis of quarterly regulatory filings for the 84 biggest banks — commanding more than 80% of the industry’s assets — shows not only how much they were borrowing through those channels at the end of March, but also the toll that it was just starting to take on some of their earnings,” Bloomberg reports. “Those rising costs threaten to turn the most strained banks upside down: leaving them paying more to amass the cash they need than they earn by lending it out.” 

Additional signs of strain on banking partnerships could be found in the recent news of Goldman Sachs wanting out of their partnership with Apple. In 2019, Goldman launched a credit card with Apple, followed by a savings account in April 2023 that hit $1 billion deposits in four days, but now the Wall Street firm wants to back out of the credit card partnership and offload it to American Express, according to the Wall Street Journal.  

How the Save-bank partnership works 

When it comes to adding a new banking partner, there are two ways we establish banking functionalities, like ACH capabilities:  

  1. An omnibus account is opened that contains sub-ledgers representing individual accounts, or  
  1. Individual accounts are opened directly on Bank Core on behalf of each customer. 

Additionally, it’s important to note that any BaaS partnerships are subject to regulatory oversight. Non-bank entities offering banking services through BaaS partnerships must adhere to applicable banking regulations and comply with Know Your Customer (KYC), Anti-Money Laundering (AML), and other regulatory requirements to ensure consumer protection and financial integrity. 

These regulations, combined with our SEC-regulated investment advisory service, ensure we’re onboarding quality customers and abiding by high standards of transparency in our communication, marketing, and financial management of our customers’ funds.  

“At Save, we are focused on our customers, whether that’s an individual or a banking partner,” said Adam Watts, President and COO of Save. “This customer-first mindset succeeds only when communication is excellent, and our technology and development is adaptable.” 

The future: Bank-fintech partnerships 

Partnership expectations are only set through transparent, dialogues between the parties. Execution is streamlined through those initial conversations and our platform technology and team. Additionally, the Save partner model is adaptable and can be tailored to fit any future partners’ needs.  

If you’re interested in exploring a bank-fintech partnership with us and how to reduce your customer acquisition costs and provide a competitive product range to your customers, please contact us.  

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