Latest news with #digitalbanking
Yahoo
35 minutes ago
- Business
- Yahoo
Hybrid branch-bank models & digital inclusion in retail banking
Retail banking has undergone profound shifts over the past decade. Digital channels have undeniably transformed service delivery and broadened financial inclusion. Yet, despite the rise of mobile banking apps and AI-driven tools, the physical branch continues to play a vital role - especially in fostering trust, supporting the financially vulnerable, and anchoring community relationships. The hybrid branch-bank model is not simply a compromise between old and new. It is a strategic integration - blending the familiarity and assurance of in-person banking with the convenience and efficiency of digital services. This evolution is not driven by nostalgia but by customer demand across demographics and regions. Hybrid models reflect how real people live, bank, and engage. In emerging markets, branches remain the gateway to formal banking. They provide critical services where digital penetration remains low or inconsistent. And even in digitally mature countries, certain customer segments - the elderly, microentrepreneurs, and those with accessibility needs - prefer or rely on face-to-face interactions. Branches are not obsolete; they are being redefined. A modern hybrid branch is no longer a transactional venue. Instead, it becomes a consultative hub - a space where complex financial decisions are discussed, where small businesses are nurtured, and where financial literacy is advanced. The future branch will be smaller, smarter, and more purposeful. It may have fewer counters, but it will have more tools - biometric authentication points, digital onboarding stations, and live remote advisory services. In the hybrid model, branch staff are empowered to play broader roles. The traditional teller role is evolving into that of a universal banker - someone capable of guiding customers across physical and digital touchpoints. Upskilling, soft skills, and data literacy are becoming as important as operational knowledge. This human-centric approach adds warmth to technology. Importantly, digital inclusion must not be an afterthought. In designing hybrid models, banks must ensure that technology is not a barrier. Interfaces must be intuitive. Language support must be thoughtful. Accessibility features must be embedded. And above all, empathy must underpin every digital journey. This is how we ensure inclusion is meaningful and sustainable. Crisis periods have reinforced the value of having dual infrastructure. When digital platforms faced outages or cybersecurity threats, branches served as fallback anchors. Conversely, during lockdowns, mobile and online channels ensured continuity. Together, they build systemic resilience - something every modern bank needs as part of its risk strategy. Another advantage of the hybrid approach is the capacity to drive personalised experiences. Customer insights gathered digitally can be deepened through human interaction. A digital trigger - say, a mortgage query - can lead to an in-branch consultation. This cross-channel intelligence, when handled responsibly, can uplift customer satisfaction and reduce churn. The regulatory environment is also evolving. Hybrid models offer a proactive response - ensuring no customer is left behind, while also enabling banks to comply with evolving global mandates around financial access and consumer duty. Banks that embed digital within physical branches can serve communities more consistently and transparently. Additionally, there is a growing opportunity to repurpose branches as centres of community engagement. From hosting SME workshops to facilitating digital literacy drives, branches can serve a broader social role. These initiatives not only enhance financial inclusion but also reinforce a bank's standing as a trusted local partner. Data analytics also plays a pivotal role. By leveraging in-branch behavioural insights and digital footprints, banks can personalise services, improve compliance, and reduce operating costs. But this must be done with care. Customers expect transparency - they want to know how their data is used and why. When done ethically, data can be a force for empowerment rather than exclusion. This shift to hybridisation is not merely a tactical adjustment but a reflection of long-term structural change in customer expectations. Customers today want contextual banking - where the service, advice, or access is timely, relevant, and seamless across platforms. A hybrid branch delivers that continuity. One important factor often overlooked is emotional intelligence in banking. Human interactions at branches still serve an irreplaceable role in resolving distress, clarifying complexity, or simply reassuring clients during uncertain economic times. While algorithms can recommend, only people can empathise. From a regulatory perspective, hybrid branches align with growing expectations around inclusive access and responsible service models. As banks transition further into digital ecosystems, supervisory bodies are placing greater emphasis on fairness, reach, and customer understanding. Maintaining localised, digitally supported branches is one of the most effective ways to ensure these priorities are met in practice. Globally, we observe that national strategies around financial wellbeing - such as the UK's Consumer Duty or India's Jan Dhan mission - align well with hybrid frameworks. Both emphasise simplicity, reach, and financial literacy. A branch with integrated digital advisory services can execute this vision at scale. Hybrid models are also better suited to engaging younger customers, who may begin their journey digitally but require guidance on milestone decisions - buying a home, saving for education, or starting a small enterprise. These are moments where in-person conversations add trust to technology. Cost efficiency is often cited as a barrier to retaining physical branches. However, data shows that branches reconfigured for multi-functionality, co-location with community services, and intelligent workforce deployment can achieve profitable impact. It's not about square footage; it's about strategic utility. Leadership teams across global retail banks are increasingly looking at hybrid not as a transitional model but as a permanent backbone. It enables a distributed presence, resilience in operations, and a human-digital blend that reflects modern service economies. Banks that act now will shape the next decade of responsible banking. To be clear, this is not a nostalgic defence of the branch. It is a forward-looking argument grounded in customer data, regulatory trends, and operational resilience. Digital-only may scale, but hybrid delivers sustainability - with impact rooted in real people, real lives, and real outcomes. In summary, the hybrid branch-bank model is a dynamic, inclusive, and resilient response to the evolving landscape of financial services. It retains the best of traditional banking - personal trust, familiarity, and presence - while layering on the tools of tomorrow. As financial leaders, the onus is on us to ensure that our strategies reflect not just digital ambition but human purpose. Dr. Gulzar Singh is Founder & CEO of Phoenix Thoughtworks "Hybrid branch-bank models & digital inclusion in retail banking" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Business
- Yahoo
William Blair Sticks with Buy as Blend Labs (BLND) Sharpens SaaS Focus
Blend Labs Inc. (NYSE:BLND) is one of the 10 best debt-free IT penny stocks to buy. On May 28, William Blair analyst Dylan Becker reiterated a Buy rating on Blend Labs (BLND), though he didn't assign a price target to the stock. In Becker's view, the company's recent decision to divest its Title365 business marks an important strategic change. By moving away from the more services-heavy segment, Blend is now better positioned to operate as a focused vertical SaaS company. A customer using the latest mobile banking app, taking control of their financial future. Becker notes that this step should have a positive impact on Blend's financial profile, particularly by improving gross margins and bringing them more in line with those of software-first businesses. More importantly, the move allows management to sharpen its focus on the core business—developing digital tools for banking products like mortgages and consumer loans. With this narrowed focus, Becker expects Blend to strengthen its position in the market over time, particularly as it looks to deliver improved customer experiences in the financial services space. While broader mortgage market remains challenging, he sees potential for the company to unlock improved profitability and generate stronger revenue growth from 2025 onwards. Blend Labs Inc. (NYSE:BLND) offers a cloud-based banking software platform that simplifies and automates consumer banking experiences, including mortgage applications, personal loans, and deposit account openings. While we acknowledge the potential of BLND as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None. Sign in to access your portfolio
Finextra
21 hours ago
- Business
- Finextra
South African fintech Lesaka to buy Bank Zero
Lesaka Technologies, the South African fintech firm formerly known as , is set to buy South African digital-only institution Bank Zero Mutual Bank in a deal worth R1.1bn (US$62m). 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Under the terms of the agreement, which is still subject to regulatory approval, Lesaka will acquire100% of issued ordinary shares of Bank Zero. In return, Bank Zero shareholders will receive 12% of the diluted shares and up to $5.1m in cash. Founded in 2018, Bank Zero has a deposit base of ZAR400m and more than 40,000 funded accounts across South Africa According to a statement, the transaction "marks another key milestone in Lesaka's journey to build a vertically integrated fintech platform" by combining its digital infrastructure with Bank Zero's bankiing license and custome base. In addition, the Bank Zero executive team is set to stay in place for the interim, including chairman Michael Jordaan and CEO Yatin Narsai. 'This transaction reflects a strategic partnership underpinned by long-term alignment, which will result in the continued involvement of all Bank Zero founders and management," said Jordaan. "Our belief in the combined platform's future is clear and we see strong symmetry in our vision." Lesaka chairman Ali Mazanderanicalled the acquisition a "transformative event" in the company's journey.
Globe and Mail
a day ago
- Business
- Globe and Mail
Looking for Fintech Growth? Here's How Affirm and SoFi Stack Up
Affirm Holdings, Inc. AFRM and SoFi Technologies, Inc. SOFI are two standout names in the fast-evolving fintech sector. Both cater to Gen Z and millennial consumers, as well as older consumers, through technology-driven financial solutions that blend lending, digital banking and personal finance. While Affirm primarily focuses on point-of-sale financing through its buy now, pay later ('BNPL') model, SoFi operates a broader platform, encompassing lending, investing, banking and tech infrastructure. With digital financial services becoming more competitive and investors seeking scalable profitability, it is the perfect time to examine these two disruptive players side by side. Let us take a closer look at their fundamentals, execution strategies, and market positioning to see which one currently holds stronger growth potential. The Case for Affirm Affirm is witnessing rapid growth. In its third-quarter fiscal 2025 results, the company posted $783.1 million in revenues, up 36% year over year, and recorded an adjusted EPS of a penny, beating the Zacks Consensus Estimate by a wide margin. Affirm had long operated at a loss, but since the second quarter of fiscal 2025, it has demonstrated that scale and disciplined growth can translate into bottom-line results. Management also raised full-year guidance; revenues are now anticipated to be in the range of $3.163-$3.193 billion, higher than the prior outlook of $3.13-$3.19 billion. Affirm's success is rooted in its expanding merchant partnerships, ranging from Shopify and Apple Pay to Amazon and FIS, and its growing international presence, including Canada, the U.K. and Western Europe. The company's technology platform, which seamlessly integrates into e-commerce checkouts, is helping Affirm capture greater market share in the increasingly competitive BNPL space. Its adjusted operating margin for fiscal 2025 is expected to be 23-23.6%. Affirm's focus on unit economics, expanding partnerships, and disciplined cost structure makes it an increasingly attractive fintech growth story. The company is delivering on what investors want to see in 2025: profitable growth. Affirm is increasingly leveraging AI to boost employee productivity, including the use of a large language model-powered chatbot that manages a high volume of daily customer interactions with speed and accuracy. The company also plans to launch advanced tools aimed at helping merchants optimize customer acquisition, creating value on both sides of the transaction. With a strong track record in risk management, Affirm continues to expand its long-term funding relationships to support rising loan originations. It has already completed 24 asset-backed securitizations totaling $12.25 billion, backed by more than 150 diverse capital partners, underscoring the depth and resilience of its funding network. The Case for SoFi SoFi Technologies, too, has had an impressive run. In first-quarter 2025, it delivered record revenue of $770.7 million, growing 33% from a year ago, with net income jumping more than 200% to $71.5 million. Membership growth remains strong, with the platform adding more than 800,000 new users in the quarter, bringing the total to a whopping 10.9 million. SoFi's multi-pronged model, which spans banking, lending, investing, and even fintech infrastructure (through Galileo), has created a diversified business capable of capturing value across multiple verticals. In addition, SoFi's adjusted EBITDA rose to $210.3 million in the first quarter, reflecting a healthy 27% margin, and the company raised guidance for the full year. Its expanding suite of products and cross-selling ability positions SoFi as a well-rounded player in the digital finance space. However, the company's broad scope also introduces greater complexity. Executing across so many business lines simultaneously requires exceptional coordination. SoFi's heavy reliance on unsecured personal loans, which make up nearly 70% of its lending portfolio, raises concerns about the sustainability of its growth in the face of potential economic stress. This concentration exposes the company to elevated credit risk, especially given that the borrower-level delinquency rate for unsecured personal loans was 3.49% in the first quarter of 2025, per reports. SoFi's liquidity appears strained, with $27.9 billion in current liabilities, just $2.7 billion in cash as of March 31, 2025, and a current ratio of 0.8, which is below the industry average. This suggests limited flexibility to meet near-term obligations. In contrast, Affirm's robust current ratio of 11.5 highlights significantly stronger short-term financial health. How Do Zacks Estimates Compare for AFRM & SOFI? Zacks estimates show Affirm on a sharp upward trajectory. The Zacks Consensus Estimate for AFRM's fiscal 2025 sales and EPS implies a year-over-year improvement of 37% and 101.8%, respectively. The EPS estimates have been trending northward over the past 60 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Image Source: Zacks Investment Research In contrast, SoFi is also expected to grow earnings, but the momentum is with AFRM. The consensus estimate for SoFi's 2025 sales and EPS implies a year-over-year rise of 26.2% and 80%, respectively. The EPS estimates have been trending northward over the past 60 days. Image Source: Zacks Investment Research Price Performance Comparison Over the year-to-date period, AFRM shares gained 9.8% while SOFI witnessed an 8.9% growth. During this time, the S&P 500 Index grew 2.9%. Affirm also shows stronger short-term momentum, with a 1-month gain of 32% compared to SoFi's 25.9%. Overall, Affirm's superior performance so far this year, driven by better earnings visibility and market sentiment, gives it a modest edge over SoFi. Price Performance – AFRM, SOFI & S&P 500 Valuation: AFRM vs. SOFI AFRM is currently trading at 5.49X forward 12-month P/S, higher than SOFI's 5.15X. Although SoFi appears cheaper, it is important to consider context: Affirm is rapidly scaling and has entered profitability, giving investors confidence in its underlying economics and growth potential. SoFi, by comparison, has a broader but more complex business model, one that the market is valuing relatively conservatively, perhaps reflecting its operational diversification and execution risks. Last Words Both Affirm and SoFi are standout fintech innovators with strong growth narratives, but Affirm currently has more room to run. It is 18.9% below its 52-week high of $82.53, while SOFI is 9% away from its 52-week high of $18.42. AFRM has demonstrated a decisive pivot to profitability, posted robust revenue growth, and continues to expand its merchant ecosystem with disciplined execution. Its AI integration, risk-managed lending and deep capital partner network support its long-term scalability. In contrast, SoFi's broad platform comes with greater complexity and credit concentration risk, especially in unsecured personal loans. Liquidity pressures and a lower current ratio add further caution. With stronger earnings momentum, better short-term liquidity, and a focused business model gaining traction, Affirm stands out as the fintech stock with more attractive upside potential, even though the companies currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
Neobank Starling seeks expansion in US
Starling Bank, a UK-based digital banking entity, is vying for the acquisition of a nationally chartered bank as part of US expansion, Bloomberg reported. The publication further noted that the London-headquartered neobank aims to engage US banking specialists this summer to commence the acquisition process. It is focused on identifying potential targets along the East Coast that have roughly $2bn in assets. Details of the acquisition talks remain confidential, and the spokesperson for Starling Bank did not comment on the matter. This initiative follows Starling Bank's step into the US market earlier this year, when it announced the availability of its banking technology stateside and registered a subsidiary in Delaware. It aims to identify a bank whose digital capabilities are ripe for enhancement through the integration of Starling's contemporary banking technology platform, the report said. Starling Bank's move to expand internationally comes after a leadership transition, with Raman Bhatia assuming the role of CEO in the past year, taking over from founder Anne Boden. The bank has also faced regulatory scrutiny, having been fined £29m for shortcomings in its management of high-risk customers. Recently, Starling Bank introduced 'Spending Intelligence', a new AI-powered chatbot, within its mobile app. The chatbot, powered by Gemini, Google's Large Language Model, provides users with insights into their spending habits. It operates on the Google Cloud Platform, which hosts Starling's technological infrastructure. "Neobank Starling seeks expansion in US " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
