Accenture and The Partnership fund in NY have carried out some research into the collaboration between financial institutions and fintechs.
“After nearly a decade of growth for the fintech sector, it has taken a foothold in financial services. The ability to quickly adopt external innovation is creating competitive advantages for financial services companies. Entrepreneurial fintechs decreasingly see themselves as competitors with large financial institutions, but rather as partners in a large, highly regulated marketplace. Financial institutions and entrepreneurs all stand to benefit if they get the interaction right. The fast pace of technology advancement only underscores the importance of getting fintech adoption right.
It is also apparent, however, that collaboration between financial institutions and fintechs remains a challenging and time-consuming process. Tactical hurdles are slowing smooth and efficient technology adoption by established financial service providers. The questions are: Why? What’s occurring? And what can be done to increase alignment to realize mutual benefits?
To learn the answers, the fintech innovation lab took advantage of its unique window into both the major financial companies who serve as Lab sponsors and the entrepreneurs who have gone through the mentoring program.