How to choose the right payments technology partner

The coronavirus pandemic has caused business owners and financial institutions (FIs) of all sizes to re-examine their technology investments (AKA: fintech). Stay-at-home and social distancing orders forced FIs and their business customers to immediately switch to virtual means of merchant processing, including taking payments, invoicing and communicating with customers digitally.

What this means is that the opportunity for FIs to grow their portfolios today with fintech solutions is rosier than ever. The challenge is, however, that technology providers aren’t all created equally. How can you be sure that the partner(s) you select will best meet your needs? If you’re an FI that’s ready to take your business-focused products to the next level by leveraging technology solutions, this blog post is for you.

Core value alignment

First and foremost, it’s important that your prospective technology vendors view a partnership as more than just a signed contract. Look for someone who’s just as passionate about your business as you are, has a similar work ethic and level of professionalism. You also want an organization that understands your market position and shares your vision for growth.

Questions to ask:

• Why does your company exist? Or, what is your company’s purpose?
• What values do you hold as non-negotiable?
• Why should our FI do business with you instead of one of your competitors?
• Can you help us plan for the future?

Industry expertise

Look for fintech providers who not only understand your business and banking space, but who also can bring new knowledge and solutions to the table. The ideal partner will stay up to date on market trends and technology, as well as demonstrate breadth and depth of experience and education.

Questions to ask:

• Does your company have experience with an FI like ours? (Ask for references!)
• How does your company stay on top of evolving technology?
• Who is on your team and what is their experience?

Flexibility

Vendor relationships that offer only cookie cutter solutions usually don’t last long. And if the pandemic has taught us anything, it’s that flexibility is mission critical to navigating the changing tides of doing business. Even before our worlds were turned upside down, each business customer and deal were unique and represented an opportunity to tailor products and services for a range of circumstances, including business type and geography. Fintech partners who can pivot as assumptions or the business climate changes will offer more relationship capital than those who can’t or are unwilling to.

Questions to ask:

• How responsive is your team if an issue arises?
• How do you handle an operational emergency?
• As we grow, can you scale to meet our needs?
• If we need to scale back, can you adjust?

Communication

Assessing your potential partners’ commitment to open, thorough communication is another critical success factor. Be sure that they’re candid about the length of time it will take for them to develop and deploy solutions that meet your unique needs. If bugs need fixing or your project needs troubleshooting, you want your technology vendor to be honest about the fact that errors occurred and added time could be needed for project completion. And, of course, your partner must be open about all costs associated with doing business together.

Questions to ask:

• What is your approach to communication?
• Will a single phone call or email get my questions answered?
• How often will you contact us and under what circumstances?
• How do you charge?
• What would make our agree-upon costs go up?

If you’re looking for a trusted financial technology partner who’ll work with you to grow your revenue through innovative payment technology, now is the time. Choose a partner who will work with you to create a customized business banking program that fits your needs and those of your business customers.