By: Michael Moore
The consumer finance landscape has changed significantly over the last 10 years and a collaboration between traditional banks and FinTech looks to be a sound solution to address changing market demands. The banking model is continuing to advance at a rapid pace thanks to technological advances and regulatory changes. Advances in digital financial services are fueled by the consumer’s need for more convenient online and mobile solutions.
Friction-less online payment processing was one of the first Fintech disruptors to core banking functions followed by easier online account creation, better rates, and a vastly improved online banking experience. These changes have benefited consumers less likely to interact with a traditional bank providing them more access even in situations when they have been turned down for credit.
The influence of Fintech lending has had a powerful impact on traditional banking. Banks need to evolve at a faster pace while building solutions to better serve their customers. This need for change has lead to new technology partnerships for extending financial services as well as banking/Fintech M&A activities.
Banks have been preparing for these new challenges while continuing to focus on their customer base and remaining competitive. Adopting a financial and digital consumer-friendly technology approach around core banking services allows both Banks and Fintech companies to serve their niche markets. Banks can leverage their strong brand and Fintechs can work to optimize operations to deliver a market-driven product to consumers.