While psychologists believe that opposites attract, they also say that over the long-term they can drive each other crazy – Could this happen with Banks and FinTechs?
Although banks may have seen FinTech firms in the past as little more than a fad, concocted by liberal techy types, they have begun to comprehend that these disrupting start-ups are slowly transforming various sectors within the financial services industry – not least of all, the payment sector.
Banks and FinTech companies, often seen as adversaries within the financial services industry, have seem to struck a chord when it comes to the payment sector – and this is largely attributed to the emergence of real-time payments.
The wind of change taking place in the payment sector, is down to the growing demand from consumers and businesses for real-time payments.
In an increasingly digital world, where instant notifications and immediate satisfaction have become the norm, traditional banks have not been agile or innovative enough to meet this customer expectation.
For some banks and credit unions, partnerships with their core and channels technology providers have been underway for quite awhile. For others, such relationships are just beginning. As financial institutions look to expand their mobile banking options to include mobile wallet and other payments solutions, these alliances will undoubtedly deepen and expand. Such partnerships should deliver faster-time-to-market while offering expanded features to better compete with both traditional and non-traditional solutions providers.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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