3 Reasons Why Collaboration Between Fintech Firms and Banks Makes Sense
The battle between banking behemoths and new-age fintech firms may seem like the classic David versus Goliath. But dig a little deeper and there may not be much merit in pitting one against the other.
On the surface, one seems like an antiquated giant that’s hard to beat and the other is young, relevant and oh so agile. Fintech firms have the advantage of being able to launch with disruptive, new technologies in a relatively short time. 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. On the other hand, banks have unmatched regulatory expertise, established infrastructure, and scale.
So, what then is the future for these financial services providers? To collaborate, of course! 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