Future Strategy of Banks and FinTechs
API backed collaboration will become an expected way of doing business
Banks and FinTechs have struggled for years to find common ground. Initially, banks were skeptical of FinTechs, but have since come to appreciate their entrepreneurial approach to financial services, and also their ability to offer simple, easy-to-use, convenient, and cost-effective offerings to customers in areas most relevant to them. FinTechs however, lack scale, access to a larger customer base, and expertise in handling regulations, areas in which banks have expertise. These complementary strengths are leading to a realization that banks and FinTechs both need to have their future strategy based on collaborating with one another.