Industry Insights: Second Thoughts About Fintechs—Can We Be Friends?
There’s been a revolution in the ways consumers use technology in their daily lives, and fintechs—financial technology companies—have brought this challenge into the world of banking. Consumers are seeking out convenience and better experiences, putting pressure on traditional “brick and mortar” banks and credit unions to keep up.
Are fintechs friends or enemies? Fintech is a big, highly-varied category. It’s time to take a deeper look at how banks and credit unions can leverage long-term partnerships with carefully selected fintechs, and make these disruptors part of our future success.
We’ve collected a few recent articles to help you better understand the rise of fintechs, the current fintech trends, and some ways you can invest with them to take your financial institution to the next level:
- Evolving For Symbiosis: Rethinking The Bank-Fintech Puzzle, Financial Brand. Partnership with fintech companies offers a potential entryway to new markets, new products and growth. This article discusses how banks and credit unions can make these partnerships work, how to align the interests and risks, and how to make these connections as cost-effective as possible.
- 5 Fintech Trends Disrupting Retail Banking (And How Banks Can Fight Back), Financial Brand. While beneficial partnerships with fintechs are ideal, not every partnership is a good fit. Banks and credit unions can learn a great deal from fintech companies, and implement changes to help avoid being abandoned by their account holders. This article offers specific ideas on how to incorporate fintech-like innovations into existing services and offerings.
- Q&A: Fintech disruption far from over, Banking Exchange. This article features an interview with the co-founder of Varo Money, a mobile-only bank. He shares his thoughts on how his company has used fintech to provide the best service possible to customers by bringing in the best of two often-competing worlds.
- Towards the bank of tomorrow, GTNews. Banks and credit unions are being pushed to evolve all aspects of the traditional branch. This article examines emerging trends in data management, automation, machine learning and self-service analytics, offering advice on how financial institutions can stay competitive with leading fintechs.
About the Industry Insights Series
Alogent’s Industry Insights—this blog and the companion newsletter series—track insights into transformative financial technologies as they happen. Our diverse team of experts pulls the threads together and weave in thoughtful—often actionable—analysis to help banks and credit unions keep their competitive edge and meet new generations of consumers where they’re going next.
