It’s much talked about within the walls of both parties: How Can Banks and FinTechs Collaborate?
Banks and FinTechs have much to gain from working together. Traditional retail banks get access to the latest technology and opportunities for digital innovation, while FinTechs get closer to their biggest potential customers and a valuable distribution network for their products and services. Our work connecting FinTechs and retail banks through the FINkit platform, and our experience working in this sector over the last decade, has certainly given us some insight into the potential hurdles on the journey towards collaboration – and the routes around them.
From the outset, FinTechs should be thinking about how they make the commercial case for their integration with banks – how does their business model help banks open up new revenue streams and reduce operating costs? Innovating to solve consumers’ small daily challenges will be the real differentiator. Customers are demanding ‘life-enabling’ tech functionality from all the brands they interact with, and banks too should look to deliver services that mirror changes in consumer behaviour. Most customers don’t tend to care about data privacy as much as regulators do, so FinTechs can show banks how to use the vast amount of consumer information they have access to.