" By partnering with fintech startups, banks will give their account holders the right measure of security and speed. Account holders can know that their money is safe, and they can enjoy the latest financial technology. This is the way to became a digital bank. "
- Chris Skinner
To say that the banking industry is reluctant to change is an understatement at best; the industry has been shrouded in mystery for decades, with banks doing their best to keep clients in the dark. All of this changed though with the 2008 recession and the rising popularity of the fintech industry that came to transform the banking world by digitizing it, increasing transparency, and make it more user-friendly.
To the dismay of many banks, the fintech industry succeeded in doing what it set out to do – disrupting the financial industry. In fact, fintech companies succeeded so well that a recent report by PwC determined that the banking institutions can expect to lose over 24% of their revenue to fintech companies within the next 3-5 years.
Not eager to accept a drastic decline in revenue and risk layoffs and restructuring, more and more financial institutions have turned to fintech companies in order to collaborate on new technologies. So much so that 82% of the executives polled by PwC reported that they expect to work with fintech startups in the future in order to improve their digital capabilities and retain their competitive edge.
With fintechs and banks, co-opetition almost seems like the obvious solution, since the fintech companies have the technologically savvy, financially smarter, and userfriendly solutions, while the banks have access to critical masses and large-scale infrastructures to scale solutions.
We have developed a specific talk about the relation between banks and fintechs. This talk can be held in your company, bank or institution. This is a great starting point to the range of consulting services we can offer to financial institutions.