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I’m Ondřej Machač, a FinTech enthusiast with a passion for pushing the boundaries of financial technology. I currently manage over 15 bank accounts across the EU, constantly testing them to stay on top of the latest trends in banking and fintech. I regularly share my insights in Fintree, the largest FinTech magazine in the Czech Republic, which I founded. Additionally, I work at Roger, one of the largest Czech fintech companies, which closely collaborates with banks. I also serve as the manager of the Czech FinTech Association. You may catch me at the Money 20/20 conference or our own FinTech Roadmap event in Prague.
Together, let's explore the key features that influence how engaged, loyal, and active a bank’s customers are when using its services.
The difference between traditional banks and digital banks is more than just technological - it's about the overall customer approach. While traditional banks often rely on historical models, digital banks bring innovations that quickly respond to changing customer needs. This shift is evident in both the US and Europe, where non-banks such as Monzo, Nubank, Revolut, and N26 are quickly gaining market share.
In a LinkedIn post, Evans Munyuki highlights the difference between traditional banks and neobanks: "While traditional banks invest primarily in stabilizing and securing their systems, neobanks are building their services from the ground up as customer-centric digital products." This shift toward user experience is key to their success.
This focus on the customer is reflected in data from Optima on the German market, where Revolut leads as the most feature-rich app, boasting more than 100 functions - double the market average.
According to Mobiquity's Interactive Digital Banking Features Radar, the most successful banks are the ones that can offer features that not only meet basic expectations, but also deliver something extra - something that delights the customer and makes them use the bank services more often. The key is to be able to distinguish between "must-haves", "delighters" and "differentiators".
Monzo is well-known for its personalised annual reports. In their blog post "How We Built Year in Monzo," the company explains how they developed a system that not only displays a user’s financial statistics but also analyzes their spending, investments, and savings in a clear, visual format. This approach helps users better understand their financial behavior, making them more effective at managing their money.
“With our visualisations, we can show users where they are overspending and where they can save. We then use this data to offer personalised recommendations,” Monzo states in its blog. Such functionality has become the core pillar of modern digital banking, which is increasingly built on accurate data analysis.
PFM is now almost standard - virtually every bank offers it. However, not all banks know how to properly utilize the data. According to an Optima study, the difference between good and bad PFM isn’t in the amount of data collected but in how that data is handled. While many banks gather vast amounts of transaction data, few can translate it into meaningful reports for customers.
The concept of PFM 2.0 is emerging, emphasizing the use of advanced analytics tools like machine learning and AI to create more accurate and personalised financial plans for users.
Data is key to making PFM truly effective. Data enrichment is key to improving data quality and can be managed either internally or externally. Let’s look at bunq, the dutch neobank, as an example. They started with in-house data enrichment but later adopted an external solution to enhance the accuracy of their insights. Today, their app offers actionable financial insights, giving users a comprehensive view of their transactions.
Check out this case study to see how they made it happen.
Twisto has introduced "Instant Enriched Notifications," which provide instant, detailed notifications for every transaction. This small detail, such as displaying the purchase category and brand name at checkout, can greatly enhance the user experience. Twisto is not the only bank to offer such a feature - Revolut offers something similar, indicating that this level of transparency is becoming common practice among digital banks.
It appears that this feature is becoming common practice for digital banks that focus on transparency and user control over spending. Such features also serve as a safeguard against card misuse, as users receive live notifications of payments, preventing any surprises.
Moneyback programs, directly tied to payment cards, are another feature that benefits both customers and banks. These loyalty programs offer personalised discounts based on a user's shopping habits.
For instance, Dateio, which collaborates with several banks in Europe, has facilitated payments worth over €47 million through its cashback programs for banks such as Erste, Air Bank or Unicredit Bank. These programs not only provide customers with savings but also increase their loyalty and engagement, as customers use their credit cards more frequently and check their bank’s app for new discounts - an ideal opportunity to offer additional financial services.
Benefits of Card Linked Offers:
Virtual cards and subscription management tools enable users to manage recurring payments more effectively while enhancing security. Virtual cards allow for one-time or specific purchases using temporary card numbers, reducing the risk of misuse.
Subscription management tools help users track and organize their recurring payments, contributing to better financial oversight. With the average European expected to spend nearly €700 annually on subscriptions by 2024, offering such features positions banks to capture this payment flow and create loyal customers. As the subscription economy grows, banks that help users manage their subscriptions will become indispensable.
As part of the Open Banking initiative, some digital banks allow third parties to access customer accounts via APIs. This enables seamless integration with other financial tools, such as investment management or peer-to-peer lending.
Banks like Starling and Monzo actively use Open Banking to expand their service ecosystems, giving customers more flexibility in managing their finances.
For example, Starling allows users to manage and revoke data access to third-party apps through its Marketplace section and connected apps. External companies such as YOLT, MoneyHub, and Truelayer also use Starling’s API to provide additional financial management tools, demonstrating the extensive ecosystem Open Banking creates.
What does Starlink CEO thinks about Open Banking?
In fintech, success is not just about big trends but by small details that determine whether customers actively use banking apps or ignore them. Each of these features brings specific improvements that can make a significant difference in the day-to-day engagement for users. Features like personalised reports and instant notifications not only enhance the user experience but also boost engagement and customer loyalty.
Nowadays, the goal is to increase app visits - and it's often the small details that make all the difference.
Author's favourite apps:
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Ondřej Machač
Directeur exécutif
