European bank leaders initially saw financial technology companies (fintechs) as a challenge. Now they’re starting to see things differently. Traditional bankers are becoming increasingly open to the idea of collaborating with fintechs of all types, to improve their own offerings and accelerate growth. The timing is right. As the lending fintech world enters a more mature phase, fintech leaders are also looking beyond their own organizational boundaries for new ways to better the odds of their long-term survival and success.
Banks stand to gain capabilities in five distinct areas via fintech collaboration: customer analytics, comprehensive credit scoring, providing a fully digital customer journey, integrating digital platforms and portfolio management. To combine the strengths of traditional banking with fintech’s innovative solutions effectively, however, they need a purposeful strategy.