Magazine article Independent Banker

How to Pick a Winning Fintech Partner

Magazine article Independent Banker

How to Pick a Winning Fintech Partner

Article excerpt

Partnerships between fintechs and banks are accelerating, which is positive news for community banks. Strategic fintech partnerships can give community banks a competitive advantage, strengthen the customer experience and, ultimately, improve the customer relationship.

Community banks have a keen sense of banking and the regulatory environment, and they have a strong customer base, which is a weakness for fintechs. On the other hand, fintechs are technologists and skilled at focused problem-solving, which is difficult for some community banks. The alignment of these strengths makes for a strong marriage between banks and fintechs. Here are the five steps of evaluating a potential partner.

1 Ensure your strategies and missions align. Is the fintech devoted to community banking, or is this a one-off project for them? If the fintech is under the gun from investors or more interested in growing than helping your bank, look elsewhere. There's a lot of pressure in the fintech world to grow, especially if funding comes from venture capitalists and angel investors. When it comes to successful fintech partnerships, strategy and mission alignment are nonnegotiables.

2 Conduct an executive evaluation. This is where things can go south in a hurry. Fintech executives usually consist of a founder and chief technology officer. What background, experience and interpersonal skills do they have? Are they willing to go the extra mile and complete the regulatory and vendor management due diligence required? …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.