Banks' perception of fintechs and their strategies to tackle this phenomenon
Do banks really view fintech firms as their competitors?
While some banks perceive fintech firms to be competitors, a majority of them are starting to perceive fintech firms as a partner in their endeavours. This can be partly attributed to the increasing focus of banks to drive innovation as they are making efforts to meet the rising customer expectations. Also, this shift provides opportunities for banks and fintech to gain from the relationship - Fintech firms excel in their ability to move quickly, innovate, and exploit new technology, while the banks have capital, deep customer bases, and expertise in dealing with regulators. However, banks are going to leverage a combination of different approaches to improve their own capabilities and also the take advantage of the fintech phenomenon.