Banks used to compete with other banks. Then credit unions entered the space. Then financial technology companies (fintechs) emerged. Then new era payment processors started expanding their offerings into banking territory. And now cloud based reseller models are enabling the likes of telecommunications companies and marketing agencies to resell financial solutions. 

The time has come, banks and credit unions are facing massive disruption, and not even the walls of the financial services industry can keep you safe any longer.

BUT, you still have some key advantages:

  • You control the cash flow
  • You have a very high degree of client trust
  • You have the opportunity to evolve into a cloud brokerwith ease

Why Banks and Credit Unions are Evolving

A broker can be defined as an intermediary between buyers and sellers, so a cloud broker would then be an intermediary between cloud solution sellers and cloud solution purchasers. Through vendor networks and new era reseller models, we are witnessing the likes of telecommunications companies and newspaper companies that are now reselling marketing solutions and finance solutions.

Competitive boundaries aren't what they once were. Banks and credit unions are evolving into cloud brokers because the competitive landscape is changing.

Now, this is what happens when banks and credit unions become cloud brokers:

1. They attract new business

What are your biggest differentiators as compared to other major banks and credit unions?

If this is a somewhat tough question to answer, then you have some cause for concern. By adopting new lines of solutions, you can drastically differentiate your offering in the eyes of potential clients and give them a clear reason to choose you.

You also stand to attract clients from cohorts that were historically external to your B2B model. Existing businesses that may not currently be in need of financial support might be looking for marketing solutions, but they might opt to work with your bank or credit union because they recognize that this relationship provides them with the value add of financial support in case of later growth opportunities.

2. They build stronger relationships with existing clients

Financial relationships are built on a heavy foundation of trust—something that isn’t necessarily the case with B2B solution providers hailing from other industries. When your clients face challenges, they often turn to their reps for both business and financial advice. How much stronger would this relationship become if they also turned to their bank or credit union for technological questions and marketing consultancy?  

Now your advantage becomes two-fold. You prevent opportunity money from being lost out the back door to (now) tertiary competitors, like tech companies, marketing agencies, etc. You also gain a unique positional advantage over direct competitors with a more unique and diversified offering.

3. And losses are averted

Your business clients have come to you for lending services, and if you have approved them, then you are optimistic that they can turn your loan into a profit. 

But the reality is that these new businesses need so much more than funding, they need:

  • Marketing resources
  • Operational and productivity solutions
  • Websites and hosting
  • WiFi and other locational services
  • And so much more

Now, if you were to provide a business client with a loan AND all of the tools they need for their business to succeed, then you drastically decrease the risk of loss or default from these clients.

How to Become a Cloud Broker

If you want to transform your bank or credit union into a verifiable cloud broker, then you have a few options. You could work to solicit and build partnerships with existing cloud solution developers. Or, with the flick of a switch you could instantly start reselling dozens of the most powerful cloud solutions in the world. That’s the power of a cloud broker platform.

Here’s how a platform solution works.

1. Build a Custom Store and Diversify Solution Offerings

Other banks and credit unions, fintechs, flexible startup banks, and now new industry entrants are knocking on the doors of your business clients. And some of them have more compelling value offerings—so what’s preventing your clients from leaving?

With a cloud broker platform, you build your own digital store and can fill it with the solutions of your choosing. Price and package them your way, and then open the floodgates to your clientele.

build a custom store

2. Integrate Clients into a Cloud-Based CRM

On-premise data and legacy ERPs/CRMs are black holes when it comes to cost. By integrating your client data into a best-in-class cloud-based CRM, you can save time, energy, and resources by removing unnecessary toil. Quickly manage all accounts from the 10,000 foot view, use advanced filtering functionality, set up your reps with their own accounts to manage their portfolios, and let automation do the rest.

cloud-based crm for banks and cus

3. Deploy Marketing Automation Tools to Drive Upsells

New clients are going to be sourcing various productivity, operations, and marketing solutions from other B2B providers, so why not provide them with that value-add before they leave the building? And existing clients likely have unmet needs that would only aid their business performance if met.

With powerful sales and marketing automation, you can launch targeted upsell campaigns in a click, and you could have needs assessments and opportunities delivered to your inboxes without having to lift a finger. 

marketing automation

4. Give Clients a Comprehensive Reporting Dashboard

What if you’re clients had the power to manage their lending profiles, view automated solution performance/reporting, get automated notifications when activity happens via a custom activity feed, and instantly add/remove solutions from their portfolio?

You can offer your business clients this caliber of capability set, and do it all under the name of your bank or credit union.

custom reporting dashboard

5. Outsource Fulfilment to White-Label Teams

Your core line of business deals in dollars and cents. You may offer consultancy, but not across the breadth of new solutions available. Expanding staffing to accommodate new solutions is risky for margins, it requires time, and is a fixed cost against the variable revenues of new solution offerings.

Fortunately there are third party fulfilment teams that will complete this additional service work in place of your credit union or bank. No risk. Experts in each field. Variable cost against variable revenue.

Become a Cloud Broker with Vendasta

Vendasta is the fastest avenue for banks and credit unions to complete the cloud broker evolution, and truly take an offensive stance against all the tertiary competitors that are redefining the market. 

What’s more? 

Vendasta partners grow their digital revenue by an average of 3.5x in their first year alone. 

Start earning with a cloud broker platform.