Personally, I believe Fintech and banks should be friends but not foes. In some previous blogs, I have already introduced the idea that fintech companies will face great challenge for growth if they do not partner with banks, and banks may actually increase their service and efficiency if they work with fintech companies and adopt new financial technologies. Obviously, a summary report from ABA National Conference for Community Banks further attested to my opinion.
According to the report, bankers were far less optimistic of fintech in 2015 than they are today. Two years ago, bankers saw fintech companies as a potential threat and thought innovative financial technology could lead to a revolution in the banking industry. Today, bankers’ attitudes have changed dramatically and they believe that traditional banks can adapt to financial technology as well as they could to every other banking innovation in the history, such as ATMs. Banks can benefit from financial technologies in a great many ways, such as through automated services. On the other hand, fintech firms have also found it critical to partner with banks. Fintech firms, in general, lack credibility in customers’ opinion. For example, lenders averse the idea that a lending company should grow fast without being a bank, and therefore lack confidence working with fintech companies.
I believe that in the near future, we will see more and more partnerships between fintech companies and banks, and they will deliver revolutionary technologies that make customers’ banking experience more convenient.
Source:https://www.forbes.com/sites/franksorrentino/2017/03/02/fresh-from-aba-2017-community-bankers-are-riding-the-fintech-and-regulation-wave-of-optimism/#4cb25c1fd2bz