The MK Team would like to recognize and send a special thank you to Silvio Tavares, the President and Chief Executive Officer of the Digital Commerce Alliance, and his team for the opportunity to collaborate and reach their audience. Commerce Code is recorded and published by the Digital Commerce Alliance, a multi-industry trade association advancing the future of commerce through collaboration, education, and standards in card-linking, mobile wallets, and financial data.
MK’s mission is to strengthen local economies by empowering community financial institutions with modern technology to serve consumers digitally. In Episode 73 of Commerce Code, Har Rai sits down with Silvio to share how our mission orchestrates change within the financial services industry. Har Rai differentiates MK’s digital account opening and loan origination platform against others in the FinTech space. He uncovers consumer trends and advises local institutions on how to stay competitive against megabanks in an increasingly digital world. Har Rai also offers insight into how a financial institution should approach vendor selection and begin their digital transformation.
Over the last six years, we transformed the Consumer Experience with a digital onboarding platform that supports both sides of the balance sheet. MK builds consumer interest through our modern online Store and seamlessly converts applicants with a mobile-first Checkout, which can be completed in under three minutes. Our Back-Office Experience centralizes application workflows in a single order processing system. In Dashboard, back-office teams can review applicants, automate Decisioning, and deploy end-to-end dataflow from application to core processor. MK’s customers reduce applicant dropoff by introducing an intuitive onboarding experience and real-time decisions.
Check out the podcast below and continue reading to learn how MK can transform your institution’s digital storefront and streamline your back-office.
“How does MK leverage partnerships with third-party providers to deliver the best experiences and technologies for community financial institutions?”
Har Rai: “MK is a platform provider for banking technology. Bringing a platform to market requires partnership. One cannot do it alone because you wouldn’t satisfy all of the requirements of the financial institution. We ultimately partner and try to joint-market the industry with these integration partners.”
Silvio: “Really interesting. In many ways, you’re a tech platform bringing it all together, making it simple and easy to use for your customers.”
“What advice do you have for community financial institutions as they look to comprehensively support consumers in this new age of digital?"
Har Rai: “Every financial institution has to be asking themselves that existential question, ‘Why me? Why now?’ For the banking technology industry, your website is not just the face of your financial institution, it’s actually your first branch. What we’ve tried to center our differentiation around is being a digital storefront for that financial institution’s banking products on both sides of the balance sheet.”
“The other side of it is, ‘How fast and how easy is the process?’ We’re seeing that consumer dropoff on the first screen of a digital channel is usually the highest”
“In terms of the financial institutions who are trying to compete, I would encourage them not to compete with the local financial institution on the other corner of town. I would encourage them to look at the megabanks and the digital banks for inspiration. The key is to remember who we’re competing with, the largest financial institutions in the world. That competition takes place in digital services."
“What makes MK Decision different from other providers in the FinTech industry? Why is it that banks and credit unions use you versus going to somebody else?”
Har Rai: “As we looked for differentiation in the marketplace, we found that none of the account opening and loan origination providers were actually working on the institution’s digital storefront. If we build out the website’s sales funnel to help the consumer browse, shop, compare, and ultimately apply for different banking products, then we can have a major increase in our conversion percentage and pull-through ratios. We take the time to cultivate interest and consideration in the consumer’s eyes and their shopping experience.”
“Decisioning is how we started this business six years ago, but Decisioning is not enough. We’ve gone into the identity verification marketplace and looked for ways that we can access data on the consumer that’s not readily available, to make decisions that are more relevant to their circumstances. Using that data beyond the credit profile and Office of Foreign Asset Control checks gives us a larger 360 viewpoint on the consumer. Are they who they say they are? Are they worthy of this financial product?”
“Where did the name ‘MK Decision’ come from? How do you guys think about your mission?”
Har Rai: “MK is short for ‘make’. Our core purpose is to help bankers, lenders, and underwriters make decisions. Bringing confidence to our customers that they’ve verified the identity of the applicant and that they are worthy of this product is the mission behind the platform itself.”
“The mission behind the team at large, which creates a great sense of purpose, is ultimately strengthening local economies. You have financial institutions that have invested and toiled in cities for generations, and we want to make sure that the fabric of the institution permeates into prosperity for all people in that town. We want to help them compete and survive in this era of digital transformation. Those institutions serve their local communities, and those local economies are the backbone of this nation.”
“What are the biggest challenges that community financial institutions face as they try to go digital?”
Har Rai: “I think the first challenge is for the institution to truly understand their requirements and take a needs-based approach to vendor selection. From determining your needs to going through your demos and discovery calls with different providers, we ultimately suggest that you have a vendor scorecard. That scorecard can cover a variety of topics from feature functionality, all the way to cultural alignments between the institution and vendor.”
“Determining your requirements as a financial institution and then building out a scorecard for how you will actually rate the vendor are two tidbits that will help institutions face these challenges.”
During this inevitable digital transformation of banking, community financial institutions need to work with a FinTech partner to exceed consumer expectations by implementing modern online platforms for deposit accounts, credit cards, and loans. The good news is that MK Decision is here to help. Contact us to schedule a discovery call to discuss your pain points. We want to deploy a solution that best fits your institution’s needs.