The Future of Banking is Here: Meet Multi-Tenant Banking

The Future of Banking is Here: Meet Multi-Tenant Banking
December 4, 2022 | By Geniusto

​​Banking has been around for a long time. Thanks to the internet, it has become so much easier with online banking offering financial access from desktops and mobile phones. And it keeps getting better as technology evolves. Now with just a few clicks, a little tap-and-go or better yet facial recognition, payment transactions are made possible from anywhere in an instant.

The FinTech revolution has arrived and it’s changing how consumers interact with their banks. There are more possibilities, more simplicity, and even more convenience. Digital banking has taken off since the pandemic accelerated digital transformation, but what exactly is this alternative to traditional brick-and-mortar branches? Has software become a complete alternative with equal or better stability, access, and options? Let’s dive in and learn more.

Why choose platform banking? Banks can offer a broader range of financial services by integrating with the right financial partner, like Geniusto. Platform banking fully integrates into the existing banking app or web application via API (Application Programming Interface) for a seamless experience. Expanded solutions include holding funds, paying bills, managing cash flows, accessing funds, Foreign Exchange, remittance services, and managing multiple currencies just to name a few. By combining features, it’s easier for businesses to embed money accounts, cards, loans, and more to streamline digital banking for their customers.

Where does a multi-tenant approach matter? Multi-tenancy is an affordable way for multi-tenant operators to integrate their downstream customers onto a single cloud-based financial platform with total privacy. It’s like an apartment building containing hundreds of individual units. Each tenant rents their suite and maintains complete privacy once they enter their unit with their own possessions like furniture, rooms, etc. The overall building is centrally managed by a body corporate, owned separately, and shares in the costs of running the building. Everyone benefits from shared central costs often assigned based on apartment size. 

Apartments are a lot like banking! In the example above, the body corporate is the multi-tenant operator, and the building occupants or tenants are called clients or entities. A multi-tenant operator offers banking-as-a-service (BaaS) and provides payment orchestration with an Electronic Money Institution (EMI) licence. 

Security, accessibility and affordability. For tenants, the benefits are endless. Multi-tenant platforms provide added functionality for the downstream customers of each tenant. It would be far too expensive to ask a renter to build his or her own apartment building, just as it would be for each small to medium-sized business customer to fund the development of their own digital banking platform. But just because the capital investment isn’t feasible and doesn’t make sense, it doesn’t negate the need for access to digital banking and payment technologies.


Why Choose Multi-Tenant Platform Banking Solutions?

Fully branded and specifically customised. The flexibility inside the platform is so robust that each tenant can brand the platform to provide a trusted, seamless experience for their customers. The feature suite is also fully customisable so the product offering can be tailored for each client and customer set. That means the right level of access and functionality within the same app. You’ve probably already been a long-time user without even realising it. It’s a commonly accepted practice for cloud document storage, email and instant messaging, task or project management, and even marketing automation software. While default settings apply to new users, upgrade options are available with premium features. It’s the ultimate strength of the multi-tenant model.

Sharing licences brings down capital costs. With multiple customers sharing resources and usage, the system costs go down. Imagine if each customer required their own dedicated infrastructure—costs would be astronomical! Bringing on a higher volume of customers can lower the cost per user and avoids having to purchase an expensive individual EMI licence. Leasing upstream EMI licences is common practice that offers access without the upfront cost.

Appetite for risk is well managed by everyone. Not all tenants are created equal whether they be apartment tenants or banking tenants. There are rigorous compliance standards for each tenant and standards for their customers as well. After all, a genuine partnership isn’t simply lending a licence or solution, but enabling meaningful communication between technology providers and banks to expand digital banking solutions to new audiences.

How to pick the right FinTech innovator. Getting it right is a big responsibility to your clients and their customers. So it’s critical to choose a banking technology partner who nails quality, simplicity, and security to get a platform you can trust that grows with your business. Reliability and scalability are also essential elements of creating a positive banking experience with robust functionality to suit every customer need. Centrally managed, multi-tenant solutions are easy to maintain and integrate when you select the right partner. 


Choose a FinTech leader who understands digital banking

Geniusto has been leading the way in digital banking for more than two decades. We offer a full range of banking efficiencies that help clients expand their service offerings. We pride ourselves on innovation, simplicity, and accessibility. Multi-tenant solutions are the next evolution in digital banking, serving more communities around the world with affordable, fully customisable solutions.

Are you ready to put more brains behind your banking? If you’re ready to change your approach to banking and delight your customers with better financial solutions, let’s talk.