eNewsletter Spring 2017
The explosion in FinTech over the last years offers new opportunities to financial services sector shifting from “competition to collaboration”. Financial institutions engage in partnerships with fintech players, since they provide them greater speed and agility, while building new sources of revenue.
“The Future of Financial Services special report”, published in The Sunday Times, examines how the scale and speed of the technological revolution is leaving some banks behind, and what action they must take to keep up. In the Global Fintech Report published by PwC FinTech companies and financial organisations are competing less and coming together to better address their client requirements. 82% of respondents state that they will increase FinTech partnerships in the next three to five years, while 77% plan to increase internal innovation efforts.
The survey found that partnership with FinTech firms has grown from 32% in 2016 to 45% this year and more banks are engaging with technology solution providers (54% in 2017 vs 42% in 2016) to improve their operations and empower their customer service.
Furthermore, companies like Monzo, a “challenger” bank in the UK, are aiming to re-invent the current account, offering a truly digital experience to their clients.
In this new digital era financial institutions should realise that in order to increase customer retention and be prepared for the upcoming changes, it is vital to leverage new technologies and focus on intuitive product design, 24/7 accessibility, reliability, simplicity, complete offerings and faster services. Thus, FinTech practices can address many challenges in the traditional banking and help firms evolve, so as to stay ahead of the competition.
Profile Software‘s FMS.next, the company’s core banking solution, offers unique flexibility and modular architecture along with the cutting-edge technology, to address the needs of every challenger or established bank to outperform and excel in their services.
Check also out our latest video for the Alternative Finance industry!
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