Peace in our time as fintechs and banks decide they’re better friends than enemies

Ian Hollowbread, a Director for CAO Enterprise Office at ING

Both fintechs and banks believe they are partners in disrupting the financial services market, according to  new survey by ING Bank and Illuminate Financial. The vast majority (70%) of banks surveyed view fintechs as enablers and reckon they play a positive role in supporting the wholesale banking sector.

Both banks and fintechs agree that the main challenge in partnering together is navigating organisational decision making, with 60% of banks acknowledging that it can be very difficult or difficult for fintechs to connect with the relevant people in banks and 78% of fintechs agree.

Related: Finastra welcomes new fintechs into platform

Fintechs believe that compliance, operational costs and competitive pressures are driving banks towards the adoption of fintech solutions, but the survey shows client attraction and retention is the main driver for half of bank respondents, while only 10% of fintechs believed this was a main driver for banks.

For both, compliance and know your customer (KYC) seem to be the most attractive offer from fintechs.

“Customer expectations are changing, which in turn is driving innovation,” commented Ian Hollowbread, a Director for CAO Enterprise Office at ING. “We are committed to providing our customers with a high standard of service and meeting their technology needs. Partnering with fintechs allows us to develop products and services to empower our customers to stay a step ahead by making banking with ING convenient, clear and easy.”

Read more: ING Bank teams up with Scalable Capital to provide robo-advice

Mark Beeston, Managing Partner at Illuminate Financial state that the feedback received from the capital markets fintech community points towards the need or better connection between both fintechs and banks.

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