From commercial collaborations, partnerships and innovation labs to direct investment in fintech, banks are adopting varying strategies towards a resilient future growth
January 30, 2020 | Neeti Aggarwal- 90% of banks surveyed have set up a fintech strategy and only 10% banks are in “wait and watch" mode
- Strategic approaches of banks vary from collaboration, innovation partnership to futuristic equity investment in fintech
- 64% of surveyed banks are making active generic investments in developing the fintech community and building partnerships with them; only 33% plan to invest in fintechs
Fintech companies are reshaping the financial services industry by bringing disintermediation and novel solutions that address inherent inefficiencies while changing customer expectations.
Earlier considered as competitors, these fintechs are rapidly taking on the role of partners and enablers as they facilitate financial institutions to use technology more effectively, optimise resources and expand service offerings.
Evolving fintech strategies of banks
The combination of banks and fintech can produce a convergent institution that is better equipped to compete with pure technology platforms. Banks burdened with legacy systems are increasingly opening their doors for greater collaboration with fintechs to improve customer experience and expand their digital reach. It often results in a win-win synergy by providing that much-required scale in customer access to fintech.
A survey by The Asian Banker across 30 financial institutions in Asia Pacific and the Middle East in 2019 showed that 90% of the surveyed banks have set up their fintech strategies, while only 10% banks are in the “wait and watch” mode. A significant 64% of the surveyed banks are making active generic investments in fintech towards developing the community and building better engagement, including innovation labs, co-creating space, hackathons among others. On the other hand, only 33% of the banks are considering equity investments in fintech and an even smaller 29% plan to develop a fintech startup.
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From commercial collaborations, partnerships and innovation labs to direct investment in fintech, banks are adopting varying strategies towards a resilient future growth
January 30, 2020 | Neeti Aggarwal- 90% of banks surveyed have set up a fintech strategy and only 10% banks are in “wait and watch" mode
- Strategic approaches of banks vary from collaboration, innovation partnership to futuristic equity investment in fintech
- 64% of surveyed banks are making active generic investments in developing the fintech community and building partnerships with them; only 33% plan to invest in fintechs
Fintech companies are reshaping the financial services industry by bringing disintermediation and novel solutions that address inherent inefficiencies while changing customer expectations.
Earlier considered as competitors, these fintechs are rapidly taking on the role of partners and enablers as they facilitate financial institutions to use technology more effectively, optimise resources and expand service offerings.
Evolving fintech strategies of banks
The combination of banks and fintech can produce a convergent institution that is better equipped to compete with pure technology platforms. Banks burdened with legacy systems are increasingly opening their doors for greater collaboration with fintechs to improve customer experience and expand their digital reach. It often results in a win-win synergy by providing that much-required scale in customer access to fintech.
A survey by The Asian Banker across 30 financial institutions in Asia Pacific and the Middle East in 2019 showed that 90% of the surveyed banks have set up their fintech strategies, while only 10% banks are in the “wait and watch” mode. A significant 64% of the surveyed banks are making active generic investments in fintech towards developing the community and building better engagement, including innovation labs, co-creating space, hackathons among others. On the other hand, only 33% of the banks are considering equity investments in fintech and an even smaller 29% plan to develop a fintech startup.
There is n...
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