The mutual benefits of bank-fintech partnerships
There was a time when banks tended to give fintechs the side-eye. These days, banks are taking another look as they consider fintechs as a potential business partner.
Randy Rivera, an ex-banker who’s now on the fintech side, shares his thoughts on the benefits and challenges of a bank-fintech partnership.
A few takeaways from our conversation with Randy Rivera from FinTEx:
- Whether it’s a huge money-center bank or a tiny-footprint credit union, there’s a growing realization that they can benefit from more collaboration with fintechs.
- More bankers are crossing over to work at fintechs, bringing with them inside knowledge of banking operations and valuable personal relationships that can help with dealmaking.
- Challenges exist on the compliance side, including concerns about adopting “unproven” technology.
- Banks and fintechs working together to engage the regulatory side may help create clearer pathways to innovation.
For additional insights on the relationship between banks and fintechs, download the latest BAI Executive Report, “Banks and fintechs are on the partnership track.”
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