FinXTech Intel 2023 report final 2 - Flipbook - Page 4
FINTECHS OFFER MANY OPPORTUNITIES FOR BANKS.
BUT HOW DO YOU DECIDE?
By: Naomi Snyder
As part of his job, Clayton Mitchell once bought a
list of global financial technology companies from a
data provider. It had 7,000 names on it. “I can’t do anything with
this,” says the managing principal in the risk consulting practice of
Crowe LLP, who advises banks on partnering with fintech companies.
“Figuring out the winners and losers is a bit of a needle in a haystack
approach.”
Banks that want to partner with technology companies or buy software from a vendor
face the same sort of tsunami of options. On the one hand, fintechs offer real promise
for community banks struggling to keep up with bigger institutions, credit unions and
other competitors — a chance to cut costs and increase efficiencies, grow deposits and
“Figuring out the
winners and losers
is a bit of a needle
in a haystack
approach.”
loans, and give customers quicker and easier ways to do business with the bank.
But in the midst of economic uncertainty, banks face real risks in doing business with
early-stage fintechs that might consolidate or even go out of business. So how do you
choose?
The problems banks face making a digital transformation are legion. In Bank Director’s
2022 Technology Survey, 45% of responding CEOs, directors, chief operating officers
Clayton Mitchell, Crowe LLP
and senior technology executives said they worried about reliance on outdated technology. Forty-eight percent worried their bank had an inadequate understanding of the
impact of emerging technologies. And 35% believed their bank was unable to identify
the solutions it needs.
2 | FINXTECH INTELLIGENCE REPORT
POWERED BY BANK DIRECTOR