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Fintechs and Banks: An Unequal Partnership

Fintechs and Banks: An Unequal Partnership

Years ago I consulted with the legacy Wachovia Bank, headquartered in Winston Salem. Back then the bank-teamed credit and line bankers on each commercial loan, terming their working relationship an “equal partnership.” In fact, when you spoke with management offline, many admitted that the credit people were a bit more equal than line personnel. That situation reminds me of what is developing between Fintechs and banks; the nature and extent of their “partnership” appears to be dictated by a bank’s limited requirements and demands, not the Fintech’s capabilities or desires. The Fintechs (whether primarily lenders or software companies) may not view themselves as vendors, but their bank clients do.