The Competition Between Banks & Fintechs Has Been Going On For Decades, But Some New Players Are Shifting The Landscape In a Big Way

It’s no secret that financial institutions and fintechs have been competing against one another for decades. In today's financial landscape, traditional financial institutions face mounting pressure as the adoption of fintech services continues to skyrocket. These fintechs have positioned themselves as the go-to solution for fast, efficient, and affordable transactions, leaving banks struggling to keep up.

"Banks have been slow to adapt," explains Jeff Althaus, President and CEO of Mozrt Inc. "Fintechs have capitalized on speed and user experience, while traditional institutions are stuck with outdated systems that take forever to change or adapt. If they don’t figure out how to innovate quickly, they’re simply going to lose the battle. It’s not just about staying relevant anymore, it’s about survival."

While fintechs are bolted on top of banks, they wouldn’t even exist without the infrastructure of traditional financial systems. "Fintech companies rely on the very banks they claim to replace," says Althaus. "Without traditional banks, their technology doesn’t stand alone. Yet, fintechs are trying to box banks out of the equation, which is a problem that banks need to recognize—and fast."

The bottom line is clear: the banks that are prepared to embrace innovation, streamline processes, and integrate fintech solutions under their own roof are the ones that will win this battle. "If they try to do it all internally, it could take years and distract them from what they’re supposed to be doing—serving customers," Althaus warns. "But if they partner with the right technology providers, they can stay ahead of the curve without losing their identity."

In this month's newsletter, we’re exploring the competitive landscape of today’s payments space and a few key shifts that are beginning to change the game.?

The Competitive Landscape Has Changed

The financial landscape has shifted dramatically, with fintech companies like Wise and Stripe revolutionizing how payments are handled. These platforms have capitalized on gaps in traditional banking, offering faster, more convenient services. What’s imperative to reflect on is this key insight: customers don’t want to leave their banks—they're forced to because financial institutions haven’t yet adopted the technology that fintechs leverage. The real battle isn’t between fintechs and banks, but between banks that innovate and those that remain stagnant.

Today, more than 73% of businesses are engaged in global commerce, yet most banks and credit unions still rely on outdated systems, especially when it comes to cross-border payments. Banks can compete and win with the right technology, transforming from reluctant players into industry leaders. Read the full discussion on how financial institutions can recalibrate and dominate the fintech competition on our blog.

Why Community Banks Are Turning To Fintech Partners?

Community banks face unique challenges in keeping up with larger institutions, especially when it comes to modernization and digital transformation. These smaller banks are often constrained by limited budgets and resources, making it difficult to adopt new technologies. However, strategic partnerships with fintechs are becoming increasingly vital for community banks to stay competitive, allowing them to innovate, automate, and enhance their services without significant disruption to existing operations.

Despite concerns over cybersecurity, regulatory challenges, and the costs associated with new technology, community banks are showing a growing interest in fintech collaborations. Many recognize that to survive in a rapidly changing financial landscape, they must evolve and offer more modern, customer-focused solutions. Read the full article on our blog to learn more about how community banks are navigating these challenges and seizing opportunities for growth.

How Mozrt is Positioned?

How is Mozrt positioned in this ongoing competition? Good question. The competition today is fierce, but it’s not what you might expect. Financial institutions aren’t just up against fintechs—they’re up against outdated systems that can’t keep pace with evolving customer demands. That’s where we come in. Instead of competing with banks and credit unions, we partner with them, providing the technology they need to match fintechs’ speed and innovation. Our goal is simple: to help financial institutions win back customers by delivering the modern services they deserve.

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