Clients of traditional and private banks constantly require innovative and personalized proposals that are in line with their investment projects and long-term objectives. They are therefore the main actors in this sector as banks are obliged to innovate their offers and adapt their products to the current demand.

In order to satisfy their customers, banks are obviously turning to the insertion of new technologies to improve their services and follow the digital trends of the financial market. Among these solutions, they choose to invest in fintechs, which have become popular in the field today.

They respond effectively to this need of the constantly evolving financial market, developing optimized digital methods to make customers’ operations more fluid and allow them to use them without necessarily having direct contact with the banks.

This bank-fintech collaboration calls for the implementation of processes that are studied, managed and monitored by the partner bank’s IT experts, as the goal is mainly to develop banking services and particularly to satisfy customers in terms of personalized input and value. Banks should therefore choose the fintech which skills and expertise best match the specific need of their customers and conduct a study on possible new functionalities that could possibly arouse their interest and facilitate their operations.

As mentioned before, this is a collaboration between the two parties since banks need fintechs to ensure the digital distribution of their products, and at the same time fintechs need the latter’s expertise to access fairly advantageous financing costs which consequently facilitate their internal development.

That said, it is possible that this situation will give way to competition. Although fintechs are complementary to the services initially offered by banks, they are not exempt from the possibility of their takeover by their partners if the business models put in place generate a significant gain and promote absolute customer satisfaction.