FinXTech Intel 2023 report final 2 - Flipbook - Page 6
Over the past five years,
has your bank partnered
with financial technology
companies in any of the
following ways?
aggressively,” Hartman says. He adds that banks are
beginning to reckon with the competition coming from
the biggest banks in terms of digital services. “That’s
trickling down into the regional and community bank
Respondents were asked to select
all that apply.
space,” he says.
Fintechs, likewise, are adjusting to banks’ sizable reg-
We use technology companies as vendors only
ulatory compliance obligations, and they’re maturing,
too, says Susan Sabo, the managing principal of the
52%
We have collaborated with one or more
technology partners to develop specific solutions
39%
We have participated in a venture fund that
invests in technology companies
20%
financial institutions group for the professional services firm CliftonLarsonAllen LLP. Many fintechs have
upgraded their structure around risk management and
controls to ensure they’ll get bank customers. “With
the onset of the pandemic, I do think it allowed many
fintechs to reset and reinvest, and they did start to
build some traction with banks,” Sabo says.
Still, many banks hesitate to use an alternative to the
big three core processors or switch the bulk of their
We have directly invested in one or more
technology companies
11%
Our bank has acquired one or more technology
companies
4%
lending and deposit gathering capabilities to a fintech,
she says. They’re sticking to fintechs that offer what
she calls ancillary solutions — treasury management,
credit loss modeling and other types of platforms.
But even that has been changing, as evidenced by the
success of the fintech nCino, which sells a cloud-based
operating system and had its initial public offering in
2020. Sabo recommends using proper due diligence to
Source: Bank Director’s 2022 Technology Survey
vet fintech companies. It’s also important to consider
cybersecurity, data privacy and contractual issues. And
last but not least, consider what can go wrong.
For more on due diligence, go to page 14.
For more on cybersecurity, data privacy
and contractual issues, go to pages 18-21.
To find out what can go wrong, check out
pages 23-26.
4 | FINXTECH INTELLIGENCE REPORT
POWERED BY BANK DIRECTOR