English
IT'S TIME TO ADVANCE BEYOND BASELINE DIGITAL FUNCTIONALITY

It's Time to Advance Beyond Baseline Digital Functionality

June 27, 2022

Accessing banking, payments and other financial services via digital channels has become a basic consumer expectation.

Once a cutting-edge capability, accessing banking, payments and other financial services via digital channels has become a basic consumer expectation. With digital now table stakes, it’s incumbent upon providers–including established banks, challengers and fintechs–to figure out how to sweeten the pot for users by providing value-added services that fulfill consumers’ next-generation demands.

Providers that meet this challenge will significantly strengthen their hand when it comes to customer acquisition and long-term loyalty and retention, according to Galileo Chief Revenue Officer Seth McGuire.

Speaking at the recent Fintech Nexus conference in New York City, McGuire noted that consumers are placing an increased onus on their financial services providers to advance beyond what has become baseline digital functionality and offer enhanced money management tools.

“We are seeing this shift in mindset towards, ‘Yes, you’ve accomplished digital and I like that, that’s why I’m here with this bank. But I also want more out of this, and I need you to bring more to the table,’” said McGuire.

McGuire’s sentiments were echoed by co-panelist David Kilin, Vice President of Finance for fintech specialist Current.

“We see an increasingly aware and educated customer who originally came to digital banking for the convenience, the ease of use, possibly the lack of fees, and has gotten very comfortable with that and now is looking for a more specific value proposition, and to solve specific problems,” said Kilin.

Current’s own value proposition includes features such as up to two-day early paycheck access, no-fee overdraft up to $200, access to 40,000 fee-free ATMs in the U.S. and a 4 percent APY offering on up to $6,000.

Offering such perks is crucial not only to attract new users, but also to retain existing customers, who are more willing and able than ever to switch to a different financial services provider if they aren’t satisfied with their current one.

“In digital banking, it used to be that when you got a customer, you’d probably have a 20-year direct deposit user,” Kilin noted. “I think that’s changed a lot because the infrastructure and technology providers have made switching easier, and so now it’s a ‘What have you done for me lately?’ kind of conversation.”

McGuire agreed as to the drastically reduced stickiness of the typical relationship between financial service provider and customer.

“No longer is the bank that I started out with by depositing my first paycheck, or in college or when I got married, now my bank forever,” said McGuire. “So that’s a big opportunity for providers to gain users, but it does require delivering on execution as well as building out new products to bring customers in.”

McGuire cited secured credit as an example of a high-demand service that financial services providers increasingly are seeking to leverage in order to gain new customers and deepen relationships with their existing users.

“We’re certainly seeing demand from our clients for credit-builder or secured credit tools that enable their customers to continue their journey with their banking partner,” said McGuire. “So perhaps a customer has a debit account or a savings account and features like round-up or overdraft, but they really want to start to build credit. That’s a great opportunity for a provider to expand how they can serve their customers with multiple products.”

McGuire and Kilin agreed that as the overall digital financial services market continues to grow, so too will the size of the potential market jackpot to be had. But given the shifting dynamics of the industry, providers who want a piece of the pie will need to ante up.

October 15, 2025

How Technical Barriers Limit Financial Inclusion Across the Americas

The Galileo Technical Inclusion Index reveals insights from 600+ CTOs across US and Latin American banking sectors on how infrastructure barriers, data silos, and legacy systems are hindering financial inclusion. Comprehensive analysis with implementation strategies for banking modernization across the Americas.

See More
October 9, 2025

How Banks Can Improve Customer Support with Conversational AI

20% of banks lose customers due to poor digital support. See how AI reduces chat abandonment 50%, cuts response times 65%, and drives improved customer satisfaction and loyalty..

See More
October 8, 2025

The Agentic Payments Revolution: A Strategic Guide for Banks and Fintechs

What banks and fintechs need to know about adopting secure, AI-driven smart payment systems — technologies, benefits, risks, and real-world examples. Complete implementation guide with key ROI metrics, compliance frameworks, and step-by-step deployment strategies for autonomous payment agents.

See More
October 7, 2025

How Will AI Transform Latin American Banking in 2025?

Discover how AI transforms Latin American banking through enhanced personalization, real-time fraud prevention, and autonomous workflows. Learn implementation strategies, regulatory requirements across the region.

See More
October 2, 2025

The Future of LatAm Financial Inclusion: Education as a Growth Driver

Financial literacy education drives Latin America’s next inclusion phase, transforming account access into customer engagement.

See More