The COO of UBS’ Wealth Management sector said recently that banks are now focusing on working with FinTech companies instead of regarding them as competition. They need to find very smart ways to partner up and improve the existing business model of banks. Banks need FinTech to stay relevant in the fast-paced technological world we live in and FinTechs need banks to help them become more mainstream.
However, while FinTech companies are enjoying the benefit of working with banks, banks should be more careful when it comes to cyberattack. Some banks believe that greater regulatory oversight is needed within the sector. Last December, the Bank of England is reported to have recruited financial technology companies to help prevent cyberattacks targeting financial institutions after a survey found that cyber risks topped the list of financial service concerns.
From my point of view, as long as banks are proactive to prevent cyberattack, they will continue to enjoy the benefit of working with FinTech and vice versa. Moreover, regulation should be made as more and more collaboration will happen between banks and FinTech. Hot FinTech market, such as Australia, India and China with increasing funding flows to FinTech, should work on regulation to ensure a health market.