How can fintech and banking teams collaborate effectively?

The pandemic has opened up an avenue for the fintech and banking industries to synergize. It has shown just how much both are needed, especially in the midst of an uncertain phenomenon. People need the services of each, and reach for them to navigate their daily lives - more so, to recover from this global health crisis. Now this is what the fintech and banking industries now focus on, to serve and make people’s lives easier. It’s a common goal that we must all strive on, so as to perfectly collaborate with one another. Besides, we exist for the same reason, understanding that goal and taking it to heart is key towards developing and growing amidst certain differences may it be in structure or processes.

Although this is true historically, post-Covid, the need to collaborate to innovate has become a “do-or-die” discussion. The goal of any bank has to be how they remain relevant with their customers in the digital realm. Brick and Mortar expansion is a thing of the past, “true” Digital transformation has to be the priority. Integration to multiple systems, risk mitigation and regulatory compliance is a constant across all projects and should be dealt with based on the “new customers” needs.

Fintechs have a key advantage that banks can leverage, agility and entrepreneurship. Banks have a key advantage of licensing, capital, and regulatory coverage. Banks, designed to be stable monoliths that are risk averse can create market advantage through a Fintech’s ability to flex with the modern society and capitalize on timing. Partnering can give both the best of all worlds. New products can be created, tested, and released without the bureaucracy a banking world. All the while the bank can provide needed licensing, funding, and infrastructure.

Personalized Services: Relationship banks often take the time to understand their customers' financial goals, risk tolerance, and unique circumstances. They use this information to tailor their financial products and services. Trust and Loyalty: Building trust and loyalty with customers is a central goal of relationship banking. Banks aim to create a sense of partnership and reliability. Cross-Selling: Relationship banks frequently cross-sell a variety of financial products and services to their existing customers, leveraging the trust and knowledge they have established. Risk Management: Relationship banks tend to have a better understanding of their customers' financial situations, which can aid in risk assessment and credit decisions.

Extend the SDLC - carry out the same Scope analysis and exploratory calls. Free up the product team in the bank to support and work with the fintech/agency/partner to ensure the correct infrastructure topography is considered. Knowing the size of the foot makes the shoe maker's job that much easier.

Relationship banking emphasizes building long-term, personalized relationships with customers, and it is closely related to the fintech and modern banking systems through the integration of technology to enhance customer experiences, gather data for better decision-making, and offer a wider range of financial services. Fintech plays a pivotal role in enabling banks to deliver relationship banking services efficiently in today's digital age.

Absolutely, one size does not fit all. Each entity and individual brings something unique to the table. The only way to collaborate effectively is through mutual respect and understanding of the intimate goal

I'd hedge my bets here - work with a trusted partner of a vendor via a project like the Temenos Exchange (we vet all our fintechs and put them through an external assessment to ensure they are robust and capable organizations). Once the NDA's are in place and you're sharing Dev environments the rest is up to your engineers and PM's to agree.

Difference sparks creativity. Fintech's agile approach can fuse with banking's industry know-how, generating fresh perspectives. See diverse skills and cultures as complementary, not conflicting. Create an open environment where teams learn from each other's unique strengths. The synthesis of fintech ingenuity and banking experience can lead to truly innovative solutions.

Absolutely, embracing diversity in skills and perspectives is pivotal for fruitful collaboration. Fintech and banking teams, with their distinct backgrounds and work approaches, can fuse creativity and innovation. Their differences are not hindrances but rather catalysts for learning, questioning assumptions and birthing novel ideas. Agile methodologies from fintech and industry insights from banking create a winning blend.

A good example would be implementation post-covid. Fintechs and Banks collaborate a lot more virtually and work is performed remotely. Technology is now being embraced and although on-site presence is required for certain processes, 80%+ of the work can be done remotely.

Technology Integration: Fintech (financial technology) plays a significant role in the modernization of relationship banking. Banks leverage fintech solutions to enhance their ability to gather and analyze customer data, enabling more personalized services. For example, they might use artificial intelligence (AI) and big data analytics to assess customer behavior and preferences.

Your IT Manager isnt going to like it, but things like Git, Slack, Trello and inevitably A.I from any one of the zillion suppliers are going to enter the office - Just like the BYOD policy working with fintechs is going to create a bunch of new integrations or new software subscriptions (unless you want to do everything in Excel over email)

Location and environment differences need not impede collaboration. Tap technology to bridge physical divides. Cloud platforms, video conferencing, chat tools, and project software connect teams across time zones, allowing seamless communication and coordination. With the right technical infrastructure, fintech and banking partners can work together seamlessly, remaining aligned and engaged throughout the project.

Leveraging technology is pivotal for modern collaboration, especially in the fintech and banking sectors. It bridges gaps created by distance and time zones, ensuring seamless communication and task coordination. Cloud platforms, video conferencing, chat tools, and project management software are invaluable tools for enhancing productivity and synergy within these teams. Embracing these tech solutions is essential for success in our digital age.

DevOps mindset of continuous integration can help mitigate risks inside the Bank - eat the elephant in small bites not all at once - expose some dev environments or tools and work iteratively.

Data Security and Privacy: As banks collect and utilize more customer data for relationship banking purposes, there's an increased focus on data security and privacy. Fintech and banking systems must work together to ensure that customer information is protected and compliant with relevant regulations.

Cross-sector partnerships require proactive risk management. Identify and evaluate technical, regulatory, operational, and reputational risks early and often. Implement targeted mitigation strategies like security measures and performance monitoring. With open communication and vigilance, fintech and banking partners can navigate risks, ensuring quality and timeliness are not compromised. Blend fintech ingenuity with banking diligence for smooth collaboration.

Managing risks is indeed a crucial aspect of successful collaboration, especially when working across different sectors like fintech and banking. Identifying and addressing technical, regulatory, operational, and reputational risks early on can greatly enhance the project's quality and viability. The example provided, which involves risk analysis, security measures, and performance monitoring, highlights the practical steps needed to ensure a smooth and secure collaboration.

This is where the idea of knowledge and information sharing comes in. Even though fintechs and banks may have to compete for market share, it is ideal that we collaborate with one another on where it is most needed. Enhancing customer experience and making both our services accessible to everyone should be top of mind for this to work.

Continuous feedback fuels improvement. Connect regularly with partners and customers to identify issues, gaps, and opportunities. Feedback highlights achievements and builds trust. Fintech and banking partners should embed feedback loops through surveys, interviews, testing, and reviews. Listening to each other and stakeholders ensures quality, effectiveness, and responsive innovation. Feedback is the compass guiding collaboration to success.

Seeking feedback is a crucial element in successful collaboration. It's a two-way street - not only does it enhance the project's quality and effectiveness, but it also nurtures trust and camaraderie among teams. Feedback is a compass that guides us through the project's ups and downs, uncovering areas for improvement and reasons to celebrate achievements. In the financial sector, like the fintech and banking teams, feedback through surveys, interviews, tests, and reviews is invaluable for growth and customer satisfaction.

Enhanced Customer Experience: Fintech-driven innovations, such as chatbots and robo-advisors, can provide customers with 24/7 support and financial guidance, further strengthening the customer-bank relationship.

Digital Engagement: Fintech has transformed the way customers interact with their banks. Through digital channels and mobile apps, customers can access a wide range of banking services, making it easier for banks to maintain ongoing relationships. Customers can check account balances, make transactions, and receive personalized financial advice online, enhancing their overall banking experience.