2018 BAI Global Innovation Award Winner
Innovation in Customer Experience
NovoPayment – Miami, FL, USA
Embedding FinServ in Gig Value Chain
“NovoPayment’s innovation leverages emerging technologies to seamlessly deliver in-context services to the client, and an excellent experience to their end customer.”
NovoPayment’s API-powered technology allows Banco Pichincha Colombia to dynamically deliver financial services and frictionless user experiences to their gig economy clients, without the need to alter their core systems or sacrifice security and compliance. This innovation allows the client’s platform-driven business to pull important instant issuance and mass payout services on demand and with the scalability they require. As a result, the bank is able to capture new deposits and transactional revenue, and deliver highly differentiated services at a fraction of the cost of traditional products.
The innovation solves two broader problems and several specific pain points. The first problem is banks’ and FI’s general difficulty in serving modern, platform-driven businesses, such as gig economy companies, which often feature real-time IT platforms and exponential scaling operations. This reality stems from the fact that traditional commercial product lines and service delivery models are too rigid and slow to deploy when compared to the accelerated and agile ways that these companies and their decision makers are accustomed to working with key partners.
The second problem has to do with the undesirable impacts that cash-intensive processes have on these businesses and their ability to scale (compete for capital, workers, and market share) and operate in the fully digital fashion on which the best in their field are modeled. This problem is exacerbated in cash-intensive markets such as Latin America where large shares of the population lack formal banking relationships and electronic payment instruments.
In the absence of a solution, these kinds of companies often have to rely on underserved workers to supply and maintain their own “cash purse”, basically financing part of the business and adding layers of costly logistical, labor-intensive and opaque, offline processes.
The main customer pain points addressed in this innovation have to do with these business’ difficulty in deploying their cash-on hand for purposes of retail procurement (purchases), and payment for services rendered by individuals (payroll), in a dynamic and efficient way. Another key pain point involves the business’ requirement for real time transactional data – a key element of the end customer experience.
From the banks point of view, solving these pain points translate into serious challenges in the areas of enrollment (authentication), administration (account management), transactions (mass payouts), security and compliance (KYC/AML, national ID), customer service, network integrations, and orchestration, among others.
NovoPayment’s API-enabled platform allows the bank to extend services to gig economy businesses, and embed those services dynamically into their workflows and value chains via open, cloud-based, bank-grade technology.
The solution features closed, shared and open and APIs, agile middleware and orchestration capabilities, and comprehensive network integrations that allow the bank to deliver real-time, on demand financial services that positively impact the customer’s Treasury, Compliance, Operations and Customer Experience areas.
In return, the solution permits the bank to capture new deposits and transactional flows, without the need to alter its core systems or assume undue regulatory or security risk.
From the vantage point of corporate customer experience, the solution allows the client to essentially self-serve in an electronic, platform-to-platform and often automated fashion, performing such tasks as enrolling and authenticating freelance workers, ordering and electronically funding Visa co-branded debit accounts, dynamically loading and reloading accounts at the individual transaction level, sweeping back and redeploying funds, blocking and replacing accounts, and receive specific data relevant to the end customer experience.
The innovation’s success is best exemplified by the exponential deposit and transaction growth it has generated, reaching 2,000 percent CAGR as a result of removing a key scalability obstacle for the bank customer.
In addition to a producing a highly differentiated offering, the collaboration has led to similar new business opportunities for the bank and Visa, and serves as a showcase for exploring other API-enabled services such as cash-in services and digital lending in other countries.
- Thomas McAllister, Country Manager Colombia, NovoPayment, Project Co-Leader
- Roberto Cardenas, Operations, NovoPayment Colombia, Project Lead Co-Leader
- Joffer Homez, Head of Development, NovoPayment Colombia
- Ruben Salazar, SVP, Head of Products & Solutions, ROLE, Visa LAC
- Diego Rodriguez, Regional Head of Commercial Solutions, Visa LAC
- Allen Cuelli, VP, Product Solutions & New Enablers, Visa LAC
- Roberto Duque Saenz, Director of National Payments, (project lead for bank), Banco Pichincha Colombia