According to the Independent, fintech firms have the advantage of being able to launch with disruptive, new technologies in a relatively short time; and banks have established brand loyalty, decades of experience, and most importantly, financial muscle. Fintech firms can also move faster as they are not bogged down by too much regulation or the challenges of having to establish a physical presence.
Keeping consumers’ needs in mind, fintech firms and banks will need to pool their resources to address whatever gaps there may be and ultimately offer services that are hard to beat. Also, as customisation of products become the norm, banks and fintech players will find themselves in a unique position. Both can combine their strengths to ensure consumers are showcased products that are aligned to their specific needs.
Banks can act as incubators or accelerators for fintech startups. Banks like Barclays, HSBC, and Royal Bank of Scotland are part of Innovate Finance that promotes global fintech firms in the UK. Fintech start-ups could take care of several non-core businesses or processes for banks, allowing them to remain focused on their areas of expertise even while unlocking new ways to add value to their offerings.
Read the full article, via the Independent, here.