Beyond Banking: How banks and fintechs go beyond the basics and attract clients

The banking and payment industry is going through an accelerated transformation—which is no news for those working in the industry. In that sense, initiatives keep growing when it comes to the Beyond Banking concept for banks, fintechs and companies providing financial services to go beyond when offering attractive products.

But what actually lies within this concept of going “beyond the banking” to acquire more customers and encourage them to engage more with financial services hired?

In this article, we will explain what Beyond is Banking and its applications, in addition to presenting a Brazilian success story of a company from the retailsector. Check it out!

What is Beyond Banking?

The term Beyond Banking means “beyond the bank”, in free translation. This expression reproduces the idea of ​​a wide range of products and services, which go far beyond what is traditional banks used to offer in the past.

That is a business model designed by associating banks , fintechs and companies from various segments, such as retail, health, entertainment, e-commerce, etc.

And how does it translate into practice? Through a partnership made technologically possible through APIs, it became possible to expand the range of products and services offered to each customer by payment businesses and banking – without burdening the budget and internal teams with the development of these new features from scratch.

For instance, in one app, the client can make financial transactions, contract an insurance plan, go shopping at a supermarket and buy movie tickets.

This diverse ecosystem, provided by the association of companies from different niches and within what we call API Economy, is the Beyond model Banking.

How Beyond Works Banking

The Beyond Banking works through a network of partnerships connected by APIs, which allow the integration of various services into a bank or fintech application. With the support of Open Finance, these institutions access (with the client's consent) shared financial data, which makes it possible to offer personalized products, such as insurance, credit and investments, in addition to non-financial services.

These integrations allow you to transform the bank app into a complete platform, bringing together purchases, mobility, education, various services and much more. This way, the customer can resolve everything in one place, while the institution increases its power of attraction, facilitates the contracting of its products and participates in an innovative ecosystem that generates new sources of revenue.

Way beyond financial services: What’s led to that growth?

The Beyond Banking emerged a few years ago as a strategy to face the increased competition in the market, due to the digital transformation, the emergence of fintechs and the evolution of the Embedded Finance .

On the one hand, traditional banks needed to reinvent their business models and innovate so that they didn’t lose ground to a dynamic competition. On the other hand, many fintechs needed traction to scale their operations.

In that context, Beyond Banking represented an opportunity to focus on their strategy to attract clients by partnering with other companies providing technology, products and services from different industries.

In fact, some banks and fintechs, despite being potential competitors, have become part of the same group. partner ecosystem so they could grow together.

The topic is so relevant that it has already been addressed in previous editions of Febraban Tech and, in 2025, it is the topic of one of the event's tracks: “Beyond banking and the new era of hyper-personalization”. Under this umbrella, different issues in the sector will be discussed.

Want to better understand how banks and fintechs are advancing with Beyond? Banking? Watch a panel held during FEBRABAN TECH 2022:

Advantages in Beyond Banking for the banking and payment industry

Adopting Beyond Banking as a strategy brings a number of advantages for players in the payment methodsindustry, such as:

• Greater proximity and knowledge about the public;
• Ability to offer a broader portfolio of products, in addition to financial services;
• Opportunity to enter new businesses without having to spend so many resources on development;
• Better shopping experience by providing multiple solutions in one place;
• Increased capture and loyalty of new customers;
• Diversification and revenue growth.

Why Beyond Banking is important?

The Beyond Banking became essential because responds directly to market changes, marked by the advancement of fintechs, digitalization and customer expectations for more complete and convenient experiences.

When integrating financial services and non-financial in the same ecosystem, banks and fintechs are able to offer personalized, relevant solutions in tune with users' daily lives.

This model contributes to Increased retention and engagement by transforming the banking app into an all-in-one platform, which makes the customer's life easier and keeps them connected to the service for longer.

In short, it is a way of help institutions differentiate themselves in the market by exploring new niches, expanding the offer with less robust investments and creating additional sources of revenue.

Like Beyond Banking impacts the customer experience

The Beyond Banking goes beyond traditional financial services and revolutionizes the user journey by offering more personalization, convenience and proactive service. Here are some examples of this impact on the customer experience:

• Personalization of offers: based on data and Artificial Intelligence, banks are able to understand customer behavior and offer tailored solutions, such as relevant promotions, credit suited to their profile and services aligned with their needs.
• Convenience of multiple services in one place: the customer can access various non-financial products – such as insurance, travel and marketplaces – within the bank app, quickly and without having to switch between different platforms.
• Proactive and intelligent service: the journey becomes more fluidwith personalized alerts, advance suggestions and real-time based support, which reduces friction and improves decision making.

Open Banking, Open Finance e Beyond Banking: Sharing data to go beyond

Recently, Beyond Banking has been gaining new momentum to consolidate itself in the financial universe: the implementation of open financial systems, such as the models of Open Banking quality Open Finance.

This because open finance is directly related to the strategy of going beyond the banking, as it enables the sharing of customer history information with other organizations, facilitating the contracting of services such as insurance, for example. It is no coincidence that some countries have also evolved in projects of open insurance projects in place..

With each user's consent, companies and institutions that partner with banks in the Beyond strategy Banking can better understand your preferences, needs and payment capacity. Thus, sharing data allows each provider in this diverse ecosystem to offer exactly what the public is looking for.

Beyond Banking and security: how is user data protected?

It is a fact that the Beyond model Banking It brings many innovations to make the customer's life easier, but it also raises questions about how personal data is used and protected.

To ensure user trust, this model relies on active consent, as provided for in Open Finance, which allows the customer decides exactly what information to share and with which partners. This transparency is essential to ensure user control over their data.

Furthermore, the protection of personal data is reinforced by General Law on Data Protection (LGPD), which establishes clear guidelines for the use, storage and sharing of information. In other words, the financial institution and its partners must strictly follow these rules to ensure customer privacy and avoid legal penalties, promoting a safe and trustworthy environment.

Finally, the robust technology is an essential pillar in Beyond Banking. Platforms adopt solutions such as multi-factor authentication, end-to-end encryption and continuous monitoring of systems to identify and prevent threats. This proactive approach helps minimize the risk of leaks, fraudand virtual attacks.

Practical examples of Beyond Banking

As we have seen, this strategy is already a reality for different institutions in Brazil. In the case of Bradesco,postis expanding the fintech network through investments, acquisitions and incubation of new businesses.

With this, the bank creates a ecosystem that goes far beyond the traditional banking offering, involving digital platforms focused on different segments, such as digital accounts, cards and payment solutions, all integrated to improve the customer experience.

Another practical example we can mention is Mupay, a super financial app from the Muffato Group, a supermarket chain. The platform goes beyond traditional banking functions, offering users access to a variety of services, exclusive discounts in physical stores and marketplace with promotions and cashback.

Some Brazilian initiatives of Beyond Banking go beyond traditional banking services, offering digital platforms that facilitate transactions and provide a comprehensive view of users’ finances. These companies integrate financial and non-financial services, such as insurance and marketplaces, creating complete ecosystems.

Additionally, some institutions seek to innovate with products such as cards with no annual fees and digital accounts, focusing on customer experience. Strategic partnerships between traditional banks and investment platforms They also expand their offering, combining banking services with diversified financial options.

Trends that will shape the future of Beyond Banking

The Future of Beyond Banking is being shaped by a profound digital transformation, in which institutions offer more than traditional services, integrating financial management, consultancy, insurance and protection against fraudes. This approach creates a more complete and personalized experience for customers.

In that scenario, the Artificial Intelligence and the advanced use of data will be increasingly essential to personalize services, increasing customer satisfaction, reducing churn and increasing engagement. In addition,  Open Finance and technologies that increasingly enable automation facilitate integration and strengthen collaborative ecosystems that deliver more value.

Without a doubt, the Beyond model Banking represents a great opportunity for banks, fintechs and companies, as expands revenue sources by offering services that go beyond the traditional.

According to 2024 Financial Services Consumer Survey, from ResearchAndMarkets, although more than half of customers still prefer traditional banks for basic products, less than half choose them for unconventional services, indicating that there is indeed room for innovation.

This demonstrates that offering diversified solutions can attract and retain customers, stimulating the expansion of the service portfolio and paving the way for new revenues and greater profitability.

Beyond Banking: Takeaways from this article

• Beyond Banking is a business model designed by associating banks and companies providing non-financial services and products, in order to offer diversified solutions in one platform.
• The model emerged as a strategy to face the increased competition faced by traditional banks due to digital transformation and the emergence of fintechs.
• The Open Banking and Open Finance Drive Beyond Banking from sharing financial information with different providers.
• Advantages in Beyond Banking include increased customer loyalty and capturing by offering convenience and revenue diversification for partner companies.
• Mupay is an example of a successful strategy by offering not only financial services, but also purchases with special conditions at partner companies.
• For the Beyond strategy Banking To be successful you need to know your audience well and stay focused on their real needs.

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