The world today is undergoing transformation towards digital. As more people adopt mobile methods of socialising, learning, engaging and transacting with service providers, the gap between high end technological services and low end consumers is steadily shrinking.


Due to ease of scale of digital solutions, solutions providers are able to deliver first class digital services over mobile to serve a cross section of consumers; ranging from high income to low income. This is a time where an individual’s income is not a barrier to customer servicing and provisioning. For example, retail banks today offer advanced banking services such as account transfers and commercial exchanges via mobile apps to customers who may even reside in rural areas. Such low end customers will not have had access to even basic financial services if not for the widespread availability of affordable internet and mobile technologies.


Today we identify and analyse four reasons enterprises need to integrate available and innovative fintech solutions to strengthen their service and product offerings.


1 – The ‘PSD2’ game changer – The Revised Payment Services Directive (a.k.a  PSD2) removes the restrictions and barriers to entry that third-party financial services providers would previously have faced. The European revised payment services directive (PSD2) allows for third-party services to engage in limited financial transactions and engagements with customers’ banks to streamline payments and also allows for room for the development of innovative financial services such as electronically donating for charities, crowdfunding a project, microtrade across the geographic zones, lending, insuring and more – all via mobile. The number of services can only be limited by one’s imagination.

Enterprises and businessmen who are looking to take advantage of the PSD2 directive will be excited to know that the regulatory change will not fundamentally change the way banks operate, but simply allow for limited frontending of customer accounts with financial derivatives and innovative value added services. One of the biggest benefits the revised payment services directive offers non-banking institutions is the access to limited information of banks’ customers, alongside the ability to make legal financial payments in exchange for products or services – without the need for financial intermediaries or middlemen.


2 – Position as a leading edge vendor – as consumers increasingly adopt internet based services, vendors are scrambling to develop and activate digital product strategies. With the availability of leading edge financial tech; both, off the shelf and custom developed through open source technology providers (such as WSO2), vendors can act as financial agents and bundle product offerings along with financial offerings to make the best use of both worlds.


3 – Millennial and GenZ ready – an important part of preparing a business model to be able to maintain competitiveness in the present and in the future is to maintain steady and incremental demand for your product and service offerings. Demand can only be generated when a population has a need for a service and is able to afford buying power, in other words – is able to pay money in exchange for product or service.

From a demographics perspective, populations are always aging. Older generations of customers will have passed on in the decades to come and newer generations will replace those older generations. However, newer generations such as millennials and GenZ-ers are growing up in an age where mobile is the norm. Millennials and generation Z kids are accustomed to getting things done via mobile apps and internet based social interactions. It is likely that the next generation of consumers will tend to avoid purchasing from vendors who do not support internet payments. And, vendors who are able to provide proprietary payment methods are likely to own a larger share of such a customers loyalty towards a service provider.


4 – Eliminate dependencies and shorten processes – Chris Skinner explains in his blog: “Fintech is the R&D function of financial services in the digital age….less to do with technology more to do with business model reinvention and customer centric design”. As businesses reshape their business models to accommodate and reap the benefits of fintech, ways of doing business will transform to eliminate unnecessary dependencies and procedures. Dependencies and lengthy processes that include confirmations from financial institutions to process payments may not be a necessity anymore, as banks are directed to open up customer information and limited interfacing with third party service providers.


Mitra Innovation is a leading Systems Integration with expertise in Open banking, fintech startup operations, and digital transformation. To learn more about the work we have done in the fast growing Fintech arena, read this case study. Mitra Innovation also engages in cloud activation and works closely with technology providers in the likes of Amazon Web Services and WSO2. For more information about us please do visit


Thank you for reading our latest Mitra Innovation blog post. We hope you found the lessons that we learned from our own startup story interesting, and you will continue to visit us for more articles in the field of computer sciences. To read more about our work please feel free to visit our blog.

Abdullah Muhsin

Abdulla Muhsin

Specialist - Digital Marketing and Content Writing | Mitra Innovation

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