With Fintech on the rise and banks struggling to keep up, is collaboration the solution?

Fintech is financial technology that helps consumers manage their finances. The software is accessible via desktop or mobile devices. Cryptocurrencies like bitcoin are also part of fintech development.

Naturally, as technology develops, consumers come to expect and demand greater speed and efficiency in financial payment processing. To meet these expectations, financial providers need to integrate technology into their services to offer the desired seamless experience consumers have come to expect.

With Fintech considered to be the future of banking, traditional banks have begun to acquire fintech start-ups or team up to add to their services.

• benefit from the innovation and agility of fintech
• boost confidence in financial technology with their size, scale and customer database
• have huge deposits with which to build better financial systems partnering with fintech

• will be regulated under the same government institutes as the banks they partner, which can help build trust for them
• can bring improvements to the overall financial system

Banks recognise the need to meet consumer demands by embracing fintech features and are allocating resources for better digital agility in this area. The logical conclusion is that long-term partnerships between traditional banks and fintech companies will support both parties and build a brighter digital future for the financial sector.