Walmart and Walgreens, two of the country’s largest stores, recently announced the establishment of their own banking services. This is reasonable. With one in every four persons in the United States deemed unbanked or underbanked, the pandemic has led to a shift in consumer behavior that now prioritizes contactless and digital banking solutions. This provides an opportunity to offer services to a large and devoted client base. However, because the pandemic has caused even traditional retail banks to reconsider their business models, creating a financial service is not as straightforward as transferring a successful retail model to banking. It must be both efficient and safe. Fintech can help in this situation.
As more shops make the switch, cooperating and collaborating with fintech assist them in building, scaling, and securing their financial solutions. Infrastructure development and top-tier cybersecurity are at the heart of what we do, not a sideshow. And the greatest approach for merchants to attract, win, and retain consumers — in a meaningful way that adapts to the present environment — is to start small, expand swiftly, and maintain security.
At Prime Trust, we have noticed an increase in the number of shops seeking advice or specialized widgets. They are curious about how we might assist them in developing more intriguing product offers for their consumers while also ensuring that the items are safe. They come to us because they are unsure where to begin. We understand. The latest buzzwords range from NFTs to Ethereum. However, the underlying issues remain the same. Every discussion about a new currency presents a chance to educate a potential consumer about the fintech ecosystem, to explain how the blockchain works, and how fintech businesses can assist.
As merchants grow their banking services, they will want assistance in positioning, securing, and marketing their goods to end consumers. Retailers trying to get into the financial services business must act rapidly, especially if they have no prior experience providing financial or credit services to their clients. The speed strategy is a hyper-targeted service.
Begin with smaller, more focused services, gaining a thorough grasp of what the consumer wants and offering a fantastic experience as a result. The sooner a retailer establishes a foothold in the industry and begins to capture mindshare, the better positioned they will be for scaling up.
If a shop wanted to start with a payment platform, it would need to create user accounts, fund those accounts, and allow consumers to send or spend money through those accounts (maybe even buy some crypto). Work with them to set up custodial accounts, follow a KYC/AMC compliance procedure, link those accounts to a debit card, and conduct money transfers. Fintech businesses may also obtain liquidity and convert fiat to crypto if they wish. These stages would assist the shop in establishing a foundation from which to scale.
Whenever you have an education session with a store, you should assist them in understanding the space and determining where their entry should be placed. In exchange, retailers will assist you in honing your user-profiles and understanding of the marketplace, as well as encourage you to develop plug-and-play widgets and APIs that you can give your customers as your company grows.