Start-up companies have been a major player in delivering innovative and revolutionary fintech solutions. However, it is still not common to see these start-up companies work with traditional banks. One start-up Creamfinance, has stood out from the group recently, and demonstrated success in collaborating with big banks. Creamfinance specializes in using machine learning and data analysis to evaluate credit score. They give banks a solution to quickly identify loan recipients, and facilitate in the loan application process for the customers. Since its start in 2012, Creamfinance has established services in more than 6 countries across Europe and America, and has raised over $7.3 million in funding.
In my opinion, the success of Creamfiance company is very inspiring for other start-up fintech companies. Traditional banks usually face heavy regulations, which makes it hard for them to offer customers with innovative financial services. Also, newer banks would want to use disruptive technologies to compete with big banks. On the other hand, start-up fintech companies do not have the long history and credibility that banks have, which puts them in a disadvantage when dealing with customers. The need for collaboration is definitely out there, but there are also challenges for the start-up companies. Many banks may not see some fintech solutions as promising or needed. Therefore, both being innovative and addressing the real needs of banks is critical for the success of any collaboration.
Source: https://www.forbes.com/sites/julianmitchell/2017/02/20/meet-the-fintech-ceo-making-money-easily-available-anywhere-in-the-world/#683fbfdff724