MARCH 22, 2023
11 min read
For fintech solutions, data management and synchronization are as crucial as security or seamless processes. This article in particular is about the latter. I will unravel the complex and niche matter of bi-directional approach and how it can change fintech.
After reading this blog post you’ll learn what bi-direcational integration is. Discover how it can help you smooth out business processes and enhance workflow agility.
What is Bi-Directional Integration?
Bi-directional integrations are the synchronization pattern. They enable two data sets to act like a single data entity. Simply put, bi-directional integrations are a bridge between two data sets synchronizing them.
In fintech, two-way integrations can help you pull out data from one source rather than searching through multiple bases and tools. This eliminates distractions and can nullify manual mistakes in repetitive tasks.
Here’s a practical example. Two-way API integration can synchronize your finance monitoring and CRM system. This enables you to smooth out the customer service.
This sounds like a great deal. So let’s delve into the benefits bi-directional integrations bring to fintech solutions. Since we can view them from a business perspective, I want to divulge their contribution to the company’s growth.
How Bi-Directional Integration Contributes to Business Growth?
So, how bi-directional integrations can fundamentally change your business? Well, let’s start from the beginning. Synchronization always contributes to a more seamless workflow. But there are more you can achieve. For example, here are some of the most vivid advantages two-way integrations can give your business.
Contribute to the better compliance of business and technical elements
Technical elements of your software ultimately need to be compliant with your business needs and requirements, and bi-directional integration can contribute to this goal. Say, you have a unique report generation system for your fintech software and a customer base with data of your current clients.
Bi-directional integrations can ensure synchronization between these to data sets so your customers always get relevant reports when their information changes. This way, you don’t have to manually track those changes.
Provide business with a sharper competitive edge
Two way integrations also can ensure your sharper competitive advantage. Not only will your business work more efficiently, it’ll be faster making you one step ahead of your competitors. With bi-directional integrations all data sets will correlate with each other. So you can ensure your procuts is always up to date.
For example, you can synchronize the feedback with CRM data sets, learning about your customers needs and demands. And — satisfying them.
Make business future-proof
The fintech industry is dependent on relevant data and market evolution. So, department data sets sync can get you farther in business growth. Two way integration also enables automated data entry. This will help you enhance internal communication between stakeholders and departments. So the decision making process becomes easier and faster. It contributes to faster modernization and higher adaptability to everchanging marketing demands.
The Importance of Bi-directional Integrations
So, with the understanding of the benefits comes the need to access the business value of bi-directional integration. In this paragraph, I will explain why we at DashDevs see the potential in two-way integrations.
One of DashDevs experts, business analyst team lead Yurii, commented that two-way integrations can help businesses in a variety of tasks. They optimize workflow, ensure data accuracy, enhance productivity, improve customer relations and decision making.
But let’s talk about this in more detail. So, these are the most important contributions by bi-directional integrations to the business. You might notice it shortly after using them.
- The ability to tailor the tools to the business needs. You will be able to integrate new software with your data sets. Implementation process gets quicker and data accuracy grows.
- Eliminating data silos within departments or organizations. With bi-directional integration, you can make data flow seamless with no blockers and bottlenecks. Your departments can work independently since the information circulates without interruptions.
- Removing manual tasks. Two-way integrations remove the manual repetitive tasks. For example, checking the data and downloading information from one dataset to another. So, it can act as a good automation tool.
- Helping in building unified vision across departments. Bi-directional integrations in fintech provide you with an opportunity to streamline the data flow. You will have an enhanced and clearer vision of your business transferred across every department.
The Power of Two-Way Fintech Integrations
Bi-directional integrations in fintech have some visible advantages. You can do more for your business than you could’ve imagined. The power of two way integrations can help you streamline the workflow, enhance decision making, and improve customer experience.
Streamlining Your Workflows
Bi-directional integrations allow data to flow seamlessly between different systems. You just won’t have to switch between those datasets.
Suppose your fintech software has a customer relationship management (CRM) system. An email platform informs users about new deals. With a bi-directional integration between these two systems, you can automatically sync your contacts from your CRM to your email platform. This ensures that your contact lists are always up-to-date. Additionally, one system will reflect any changes made to the contact information in another system.
Another good example is a bi-directional integration between a project management tool and a time tracking tool. In this example your team members can log their time in the time tracking tool. The entered data will sync to the project management tool. This eliminates the need for team members to enter time data into the project management tool. It saves time and reduces errors.
Enhancing Decision Making
Bi-directional integrations enhance decision-making by providing real-time accurate data.
So, data will be synced between different systems. It can cut the need for manual data entry or data migration. Thus, decision-makers can access the most up-to-date information to make better informed decisions.
Let’s imagine your fintech solution has a website and credit score analysis system. With this integration, you can update your analysis system in real-time as customers make credit requests via the website. You might use this information to make informed decisions about the customer’s interest, categories, and requests.
Similarly, a bi-directional integration between a sales CRM system and a financial reporting system can provide decision-makers with real-time data on sales performance, revenue, and other financial metrics. You might use this data to make informed decisions about sales strategies, pricing, and other business decisions.
Improving Customer Experience
When integrated properly, bi-directional integrations can improve customer experience:
- Increased efficiency: Bi-directional integrations allow the automated data exchange between systems. This leads to faster response times and more accurate information output.
- Personalization: Two-way integrations can help in personalizing customer interactions. They leverage data from different systems.
- Seamless communication: The customer inquiries can be quickly routed to the appropriate department. It improves response times and customer satisfaction.
- Real-time updates: Bi-directional enables customers to stay informed throughout the entire buy process with the real-time updates.
- Reduced friction: Two-way integrations contribute to the friction reduction. They cut the need for customers to switch between different systems or platforms, as I’ve mentioned above.
Use Cases for Bi-Directional Fintech Integrations
In fintech, bi-directional integrations aren’t way too different. They still bring the same benefits. You can use them in various parts of the business connecting departments, platforms, or different software elements.
- Payment Processing and Transactions. Bi-directional integrations can contribute to faster and more accurate payment processing. They reduce the need for manual data entry and decrease the likelihood of errors. This leads to faster and more accurate payment processing. What’s more, two-way integrations also contribute to the enhanced security. Those integrations allow for the seamless exchange of information between different systems. That is how they reduce the risk of fraudulent activity or security breaches.
- Compliance and Regulatory Reporting. Bi-directional integrations can improve compliance and regulatory reporting. They provide a more efficient and accurate way of data management. They allow seamless data transfer between different datasets. Thus they reduce the need for manual data transfer and the risk of data loss or corruption. Two-way integrations also provide a clear view of all relevant data. It allows greater visibility into compliance and regulatory issues.
- Customer Relationship Management. Bi-directional integrations can improve CRM. They provide a more complete and accurate view of customer data across different systems. They can merge customer data from different systems. This provides a more complete view of customer interactions and behaviors. Bi-directional integrations can also improve customer support. They provide a more complete view of customer interactions and issues. Apart from this, two-way integrations can segment customers more accurately based on data from different systems, and provide more accurate sales forecasts.
- Data Analytics and Reporting. Bi-directional integrations can merge data from different systems, providing a more complete view of business operations. They generate a more complete view of business operations. So those integrations also can contribute to more effective data analysis. Two-way integrations can improve reporting. They enable businesses to generate reports that combine data from different systems.
How Bi-directional Integrations Work
So, as you already know, you may use bi-directions integrations in fintech and make grand contributions to the more effective workflow. But, how the two-way integrations work themselves we have yet to figure out. In this paragraph I’m planning to discuss this issue.
- Sync between CRM and marketing tools. Any changes in the CRM or marketing tool sync with the other system without the need for manual data entry. So, when you add a lead to the CRM, the bi-directional integration can push that lead into the marketing tool as a new contact. Any later actions taken by that lead in the marketing tool, such as opening an email or clicking on a link, you can then track and record back in the CRM.
- Sync between related applications. Bi-directional integrations can help with syncing between related applications. They enable data to flow seamlessly between the two systems in real-time. A bi-directional integration between a project management application and a time tracking tool allows project data such as project names, descriptions, and deadlines to flow from one app to another. Thus, bi-directional integrations ensure that both applications have the most up-to-date information. The potential for errors and duplication of effort is reduced.
- Sync between ITSM and CRM. When a customer submits a support ticket through the ITSM system, the bi-directional integration creates a corresponding case in the CRM system. This allows the customer support team to manage the case in the CRM system while the IT team resolves the issue in the ITSM system. Bi-directional integrations provide a single source of information. This help businesses provide better and more personalized customer experiences.
Challenges for Bi-Directional Fintech Integrations
No matter how good bi-directional integrations might be, you might face few challenges. Here I’ve separated the most vivid ones companies might encounter. Let’s discover how you can avoid them.
- Technical Compatibility. This is one of the main challenges of bi-directional integration. This refers to the ability of the two systems to communicate with each other and exchange data in a way that is both secure and efficient. To avoid this issue, you might try to ensure the API’s compatibility, standardize data formats, and use an integration platform.
- Security and Privacy. It is important to ensure the security of the exchanged data to avoid any potential data breaches. To do so, you can try to put in place encryption at the database level, or use access control to control who views and alters the information.
- Scalability and Flexibility. As businesses grow, they need to add new apps to their technology stack or change the way they integrate existing systems. It is crucial to ensure that bi-directional integrations are scalable and flexible. To do so, you can adopt standards-based integration such as REST and SOAP. They allow you to add new systems and applications to the technology stack without having to rewrite integration code.
- Integration with Legacy Systems. Legacy systems are often outdated and may not be designed to work with modern integration technologies. They make integration more difficult and time-consuming. It might be the time to slowly retire legacy systems and integrate your data into more modern software.
How to Implement Bi-Directional Integrations in Fintech
In some cases, implementation of bi-directional integrations in fintech can be more complex than expected. So, there are some simple things you can do to make it easier! In this paragraph I will talk about how the right integration platform and reliable technical team can help you with the two-way integrations.
Choosing the Right Integration Platform
DashDevs’ team expert Yurii gave me an insight about what platforms to use for businesses that want to install two-way integrations into their workflow. So, together we’ve created the following list.
- Zapier. Zapier works with over 5000+ applications to allow users to implement automation solutions. It keeps focus on the most important tasks. Their customers get 75% more efficiency in customer onboarding and can automate more than 100,000 tasks.
- Workato. Workato is a platform for workflow automation that prioritizes speed and simplicity. They provide for elastic scaling and maximum security. This platform is used by Logitech, Levin, and Atlassian.
- Jitterbit. Jitterbit focuses on amplifying the productivity of their users. As an integration platform for task automation, they work with companies like Adobe and ZOHO. Jitterbit offers solutions for businesses in different domains from finance to human resources.
Working with a Reliable and Experienced Partner
An experienced and reliable technical partner can help you choose the right integration platform. But above that, a qualified team will maintain your software and support your cause through each of the development and integration phases.
In the beginning of the process, you can expect to get a consultation to help you test both the market and technical environment. This will allow your business to meet a sharp understanding of what it needs to automate and improve. In two-way integrations for fintech companies, this advantage can mean that you will know for sure which datasets to connect in order to get maximum efficiency.
But more so, if you already have one system and you seek another that can help you automate more tasks, a reliable technical partner can tune the bi-directional integrations for you. This way your workflow goes smoothly and uninterrupted when you integrate a new CRM, report generation platform, accounting software, or any other solution.
On a larger scale, this contributes to faster time-to-market.
The Future of Fintech: Bi-Directional Integrations
Overall, the demand of users to get faster services and products with the same level of quality pushes businesses to look for new ways to attain a seamless workflow. Two-way integrations for fintech institutions seem a good option to achieve this competitive edge.
Composed of all the above mentioned benefits, bi-directional integrations contribute to a faster workflow, time-to-market, smooth customer relations management, data gathering and analysis, and more. If you ever wondered whether bi-directional integrations can help your business or streamline your workflow, get in touch with DashDevs’ team. We are ready to answer any questions you may have!
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