The Joint Power of Fintech + Banking

It’s no secret that the financial technology (aka fintech) industry has been dominating the financial service market. When the industry surfaced over a decade ago, many companies and traditional banks were ready to defend their territory from the fintech uprising. This upbringing created a major stigma between traditional merchant service companies and fintech firms working together.However, many savvy banks are starting to discover the benefits of partnering with fintech companies.

 

Not sure what the difference between your traditional merchant hardware and fintech software? Don’t worry, we’ve got you covered, take a look at the image at the bottom of this post.

 

Still not convinced? Take into consideration these major benefits to partnering with a fintech company:

 

  1. Added Value for Clients: Complement vs. Compete

    1. Instead of viewing fintech companies as a competitor of the banking industry, it may be beneficial to see it as an technological asset that can advance the success that financial institutions already produce.

    2. In today’s digital age, consumers indulge in the digital experience they receive from making purchases via online channels. Consumers value modernization, and Fintech companies can enhance this need for faster innovation. Take for instance Mobilescape, which is an innovative mobile payment processing solution that provides you the flexibility to accept credit card payments anywhere. Banks can give their clients the convenience they desire and keep up with the high marketplace demands.  

    3. Bank services can’t compete with the speed and flexibility that fintech companies can provide. But partnering with these fintech companies can allow banks to make faster financial decisions, and produce more efficient customer service and user experience.
       

  2. Cloud-based Solutions

    1. The fintech industry can offer many solutions with the potential to the boost the economic growth of any bank. Their advantage over banking services has been driven by the ability to leverage new technology and online marketing channels. In addition to faster innovation, fintech provides your banking system with one tool to consolidate all your financial needs. From mobile payment gateways to e-commerce finance, fintech has it all.

    2. With these solutions, banks can improve cash flow by streamlining their cost and reduce overhead. Not to mention online invoicing software that will simplify billing as an online payment solution. Clients can use online billing tools to help them budget and manage their money effectively, all with the touch of a button from their smart phone.

 

  1. Additional Revenue Stream for Your Financial Institution  

    1. A bank’s revenue is normally generated from wealth management services, interest fees and transaction fees. However, fintech companies offer more opportunities for banks to acquire additional revenue streams such as mobile segments and customer engagement channels while delivering faster financial solutions at a lower cost.

    2. Business Insider’s Fintech Ecosystem Report states that the areas of fintech attracting new investors media are changing- insurtech, robo-advisors and digital-only banks, just to name a few. Not to mention the increasingly prominent role of B2B fintech firms in the the market today. Choosing to compete against the fintech industry will only discourage the whole segment of consumers who prefer the digital realm.

    3. Consider the opportunities that fintech firms provide that allow your financial institution to reach new target markets and broaden your client base.

 

Conclusion:

As this digital revolution continues, more banks and fintech companies are realizing the benefits of teaming up. Traditional banks need the fast innovation and financial solutions that the fintech industry provides. In turn, fintech companies rely on banks for capital and consistent support. Collectively, they are “a match made in heaven” and the collaboration between the two will only continue to advance.


Together, fintech and banks have everything needed to deliver added value for clients and innovative solutions to streamline all financial needs.

Visit Payscape on BankerAdvice.com to find out more!

 

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