Digital Transformations in FinTech Cause Companies to Restructure Pricing and Billing

There’s no denying that FinTech is booming. In fact, a recent Research and Markets report projected the industry would reach $679.9 billion by 2023, and PricewaterhouseCoopers found that 82 percent of incumbent financial institutions worldwide expect to partner with FinTech organizations in the next three to five years. This global FinTech explosion puts new pressures to keep up, and scale, taxing existing offerings and systems.

Many FinTech companies are looking at digital transformations to solve these challenges. While this digital wave of change has been happening for years, the transformation only continues to escalate. CIO Magazine from IDG lists 5 major drivers accelerating this enterprise digital transformation:

1. Customer expectations are continuing to rise
2. Speed is more important than ever
3. Customer insight continues to be essential
4. AI is front and center
5. Digital transformation begets business transformation

The transition to the relationship economy has ushered in the age of the continuous customer from whom modern successful companies must be able to rapidly learn, adapt, and capitalize. The Financial Services industry is among the many industries overhauling business and monetization models to re-invent themselves in this age of technical transformation. For example, we have a customer whose fraud prevention software uses a usage-based pricing model, to verify you only get charged when fraud is identified. Another customer, with an execution management trading system, offers usage-based subscriptions for buy-side and sell-side solutions. We also work with a technology and service leader powering financial markets that provides consumption-based subscriptions plus add-on services for faster trading communications.

Forrester is among the many experts reporting the business benefits in evolving to usage-based pricing models. We recently collaborated with their analysts in a webinar, Forrester Opportunity Snapshot: Capitalize On Your Digital Transformation With Usage-Based Models, that established:

• 71% of companies find that usage-based models lower barriers to product and service adoption
• 63% of consumption-based companies are able to offer more products or services to their customers
• 60% of recurring revenue companies see higher revenues
• 53% of usage-based companies collect customer insights to enhance relationship management

Capitalize on Your Digital Transformation with an Intelligent Billing System

While many FinTech companies are ready to make the business move to usage-based models, their existing enterprise applications can’t handle this change and can complicate or even prevent their adoption. Modern FinTech companies need an intelligent billing solution that makes it easy to test out new pricing models, handle high volumes, easily integrate with both new and legacy business tools, as well as get expert guidance to get the right billing solution.

This change can be time consuming and requires finding the right pricing models. You need to keep pace with market demand by leveraging dynamic pricing capabilities to quickly modify existing plans and launch new services to the market. You also need to systematically manage complex pricing models as well as time-sensitive financial transactions, time-bound promotions, and free trials to attract and retain your customers.

With growth, everything needs to be counted and billed appropriately with billing that delivers features, not limits. Your intelligent billing system needs to be engineered to process high volumes of payments, accounts, invoices, fees, and more every month.

The best billing offerings unlock the power of your data with automatic product syncing across leading systems for everything from ERPs, detailed tax calculations, currency conversion services, and CRMs such as Salesforce, with no billing specialist required. They also rapidly implement the perfect business model for any application and create a seamless customer experience, guided by hands-on expert billing gurus who own the end-to-end process of technology implementation. Lastly, they have an API-first application that makes it easy to connect with existing front- and back-office systems. The Gotransverse platform incorporates all of these features to provide a best-in-class billing system.

To learn more about the power of intelligent billing platforms in FinTech company’s digital transformation efforts, see our FinTech eBook Uncovering New Revenue in Billing. If you’re ready to take your billing capabilities to the next level, take a tour of the Gotransverse platform today, and call us to schedule your complimentary, personalized demo.