Research suggests the threat to retail banks from online lending is very real. If U.S. banks are going to survive the coming wave in financial technology (fintech), they’ll need to finally take digital transformation seriously.
The crucial question for the fintech industry is whether these businesses can grow fast enough while maintaining a disciplined approach and navigating the thicket of regulatory hurdles that very likely will stand in the way.
As Fintechs begin to focus more on collaboration – as opposed to competition – banks stand to gain great technology that enhances and deepens customer engagement, a win-win. However, this is easier said than done.
While we have been seeing a growing number of legacy financial services providers (FSIs) acknowledging the benefits of collaborating with fintechs to drive innovation within their organizations, and striking partnerships and opening accelerators to this end, it now appears that the collaborative approach isn't yet paying off for these institutions.