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What’s the secret sauce of a successful bank/fintech partnership?
Fintechs entered the banking industry as a disruptive force – the incumbent system was not working for everyone, leaving ample opportunity for a new generation of financial services providers to change banking forever through creative technologies.
Initially skeptical, traditional lenders would watch on the sidelines. But pressed to compete, banks and credit unions have increasingly been opting to bring some of that innovation in their own products and services.
One way of doing that has been through fintech partnerships – this way, banks don’t have to build anything themselves, so that means speed to market and agility, and it requires a smaller budget than a full-on acquisition route. For fintechs, they get to focus on just doing one thing well while gaining access to a wider customer base and industry expertise.
There are many moving parts in a bank/fintech collaboration, and a successful partnership requires effective communication among both parties.
Just look at the charts
1. Lenders are offering higher rates of annual % yields on savings accounts than Wall Street banks
2. Crypto startup funding falls due to waning appetite for crypto
Today's stories
Celsius files for bankruptcy after liquidity crisis
Crypto lender Celsius Network has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York to enable a comprehensive restructuring plan that benefits all stakeholders (CoinDesk)
Barclays to shut another 15 branches
Barclays has reported 15 new branch closures, on top of the 13 it confirmed in March, 27 in May, and 29 in June - all of which are set to shut this year (Finextra)
Deutsche Bank is the latest to enter the BNPL space
Deutsche Bank has announced it's cooperating with Austria-based fintech Credi2 to develop a white-label BNPL product for online retailers and e-commerce marketplaces -- within Deutsche Bank, the lead management for the BNPL project lies with itsMerchant Solutions unit, its payment service division (The Paypers)
Blackhawk Network, Klarna partner on physical retail stores payments
Branded payments provider Blackhawk Network and Klarna have forged a new partnership that will make it easier for consumers to use Klarna’s interest-free payment offerings with brick-and-mortar merchants -- specifically, for BNPL at physical retailers in Blackhawk’s U.S. network ranging from grocery stores to electronics shops to beauty salons (Finovate)
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