In today’s rapidly evolving financial landscape, where customer expectations are continually shifting, developing credit card stacks requires a strategic approach that places users at the center. Design thinking emerges as a powerful methodology for crafting credit card solutions that not only meet but exceed user expectations. Let’s explore how design thinking principles can be applied to create credit card stacks that resonate with modern consumers, leveraging the elements provided below:

1. Empowering Credit Card Issuance: A Unified Approach with One-Stop TSP Full Stack

A cohesive credit card issuance ecosystem is essential for seamless operations. By adopting a One-Stop Technology Service Provider (TSP) approach, integrating components like switch/processor, CCMS, UPI, ACS for 3DS, NCMC, Bank portal, co-brand portal, and a cardholder Mobile App, financial institutions can streamline processes and enhance user experiences. This consolidation enhances efficiency and provides a unified experience for both customers and financial institutions.

2. Modular Flexibility: Tailoring Solutions to Specific Needs

Every bank has unique requirements when it comes to credit card offerings. Modular flexibility allows banks to cherry-pick modules according to their needs, whether it’s a Rewards Engine, Instalment Plan/EMI module, NPA Management, or the entire stack. This approach ensures that the credit card solution aligns perfectly with the bank’s objectives and target market.

3. Highly Configurable for Diverse Credit Card Programs

Credit card programs cater to different customer segments and needs. They also work with different cobrand partners to power different use cases. A highly configurable credit card stack enables banks to orchestrate diverse programs seamlessly. Whether it’s secured/unsecured, retail/business/corporate, or charge/credit cards, the stack can adapt to different program requirements. This configurability empowers financial institutions to offer tailored solutions that resonate with their target audience.

4. Delivering a Fintech-Like User Experience

In today’s digital era, user experience is paramount. A customer-centric approach to mobile app design and user journey is essential for success. From DIY features to 100% digital onboarding, the mobile app must be intuitive, seamless, and user-friendly. By prioritizing user experience, banks can enhance engagement, loyalty, and satisfaction among their customers, setting themselves apart in a crowded market.

5. Rapid Implementation and Seamless Integration

Time is of the essence in credit card stack deployment. Banks need solutions that offer faster implementation, customization, and integration with minimal manual intervention. A well-designed stack should seamlessly integrate with existing systems like CBS, CRM, IVR, FRM, Collections System, Mobile Banking App, and Net Banking portal. This integration ensures operational efficiency and a cohesive user experience across all channels.

6. Rule-Based Operations: Ensuring Compliance and Personalisation

Compliance and personalization are two cornerstones of credit card operations. Rule-based systems within the credit card stack facilitate validations for regulatory compliance, including co-branding arrangements. Moreover, these systems allow for personalized actions at both aggregate and single-account levels, along with event-based notifications for consent and alerts, ensuring transparency and proactive communication with users.

7. Leveraging ML/AI for Real-Time Actions

Integrating machine learning and artificial intelligence enhances the capabilities of credit card stacks. Real-time actions such as fraud risk management and personalization of rewards/offers become more effective and efficient with ML/AI algorithms. By leveraging data analytics, banks can promptly detect fraudulent activities while delivering targeted offers that resonate with individual users, thereby increasing engagement and satisfaction.

8. Future Compatibility and Innovation

Anticipating future innovations and regulatory changes is crucial in the ever-evolving landscape of finance. A well-designed credit card stack is built from first principles, with scalability and adaptability to accommodate future advancements. For example, customization to support emerging technologies like Credit Line Management on UPI ensures that the stack remains future-proof, enabling banks to stay ahead of the curve while minimising costs.

In conclusion, design thinking offers a holistic approach to credit card stack development, emphasizing user-centricity, innovation, and efficiency. By embracing modular flexibility, configurability, and advanced technologies, financial institutions can create credit card solutions that not only meet the demands of today’s consumers but also adapt seamlessly to upcoming demand.

Authored by Astha Bishnoi, Manager – Partnership & Sales at CARD91

In a world that has moved to the internet and the mobile, data privacy is paramount. This is more evident in financial services. As India embraces digital financial services, the volume of sensitive consumer data has soared. Protecting this data is essential not only for regulatory compliance but also for building and maintaining consumer trust. Robust data privacy practices prevent financial crimes such as identity theft and fraud, ensuring the integrity of financial systems, and the security of customers.

The Significance of Data Privacy in Indian Fintech

The digital transformation of financial services in India has led to an explosion in the amount of sensitive consumer data being collected, processed, and stored. Ensuring the privacy and security of this data is vital for maintaining consumer trust and preventing financial crimes such as identity theft and fraud.

Challenges in Prioritising Data Privacy While Fostering Innovation

Regulatory Compliance: The Digital Personal Data Protection Bill, 2023, aims to provide a robust framework for data protection. Fintech companies must navigate these regulations, requiring significant expertise and resources to ensure compliance without stifling innovation.

Data Security: With rising cyber threats, fintech firms must prioritise data security. Implementing advanced security measures like encryption, multi-factor authentication, and regular security audits is crucial to protect consumer data from breaches.

Transparency and Consent: Consumers are increasingly concerned about data usage. Fintech companies must ensure transparency in their practices and obtain explicit consent from users for utilising their personal information for various analysis, which can be challenging in a rapidly evolving industry.

Balancing Personalisation and Privacy: Personalisation enhances user experiences but requires access to detailed consumer data. Fintech companies must balance data utilisation for personalisation with respecting consumer privacy, ensuring that customer data is protected at all times.

Strategies for Prioritising Data Privacy at CARD91

1. Embedding Privacy into Product Development: CARD91 integrates data privacy considerations from the initial design phase of all products and services, ensuring inherent protection of consumer data.
2. Advanced Security Technologies: CARD91 deploys cutting-edge security technologies, including AI for threat detection and end-to-end encryption, to safeguard consumer data from cyber threats and breaches.
3. Regular Privacy Audits and Assessments: Frequent privacy audits and assessments help CARD91 evaluate and enhance the effectiveness of its data protection measures, identifying and addressing potential vulnerabilities promptly.
4. Employee Training and Awareness Programs: Ongoing training and awareness programs for employees foster a culture of privacy awareness, ensuring all staff members understand their role in protecting consumer data.
5. Consumer Education and Transparency: CARD91 prioritises transparency by clearly communicating its data privacy practices to consumers and providing educational resources to help them understand their rights and protection measures.
6. Robust Incident Response Plan: A comprehensive incident response plan enables swift and effective action in the event of a data breach, minimising its impact on consumers.

By focusing on these key strategies, CARD91 ensures that data privacy remains a top priority while fostering innovation in the Indian fintech market. This approach not only complies with regulatory requirements but also builds lasting trust with customers, driving long-term success.

The Role of Government and Regulatory Bodies

The Indian government and regulatory bodies, such as the Reserve Bank of India (RBI), play a pivotal role in shaping the data privacy landscape. Initiatives like the RBI’s data localisation mandate and the forthcoming Digital Personal Data Protection Bill emphasise the importance of protecting consumer data. The establishment of the Data Protection Authority (DPA) will further strengthen the regulatory framework, ensuring compliance and safeguarding consumer interests.

Conclusion

As India’s fintech sector grows, giving importance to data privacy while fostering innovation is critical. At CARD91, we are dedicated to protecting consumer data through privacy-centric practices and robust security measures, ensuring the safety and trust of our customers.

In an era where data is the new currency, excelling in data privacy is not just a legal obligation but a strategic advantage. Fintech companies that prioritise data privacy will build lasting relationships with their customers, driving long-term success in the dynamic Indian fintech landscape.

At CARD91, we are committed to creating a secure and innovative environment for financial technology in India, ensuring a sustainable and trustworthy future for the industry.

Authored by Astha Bishnoi, Manager – Partnership & Sales at CARD91