Why Banks Must Rethink About Building Own Fintechs.

What is the problem?

Traditional banks are held back because they're more preoccupied with operating within industry boundaries dating back to 300 years, making them miss out big on investing in offerings that go beyond banking.

The first reaction by most traditional banks when thinking about digital banking has always been to build their own fintech platforms in-house which is a bad idea in the era of Partnerships or you like it, Shared-Economy. This has been proven to be an expensive solution to many who ignored the idea of leveraging partnerships with those who are good at building digital banking products.

What is the better way?

Banks must learn to leverage partnerships rather than trying to build new models from scratch, especially where it does not make business sense to do it in-house.

Below are a few examples of such partnerships.

Opportunity A: BNLP-a-as-Service, which is a rapidly growing sector with a promising future according to GrandViewResearch.com and I quote, "The global buy now pay later market size was valued at USD 5.01 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 26.0% from 2022 to 2030.

Buy Now Pay Later (BNPL) is a payment option that allows customers to make purchases online and at stores without having to pay the complete amount upfront"

Opportunity: Ecosystem-as-a-Service, where we can also see that E-commerce companies are transforming into financial hubs that cater to everyday banking needs. Virtual MYbank, backed by Chinese Alibaba, takes customer deposits and lends them to small businesses and customers operating on the Alibaba platforms.

Opportunity C: Data-Sharing-as-a-Service, accelerated by the European PSD2 mandate, has ushered in a massive opportunity for more open banking. Banks can now deliver a considerable amount of data to fintech companies and create new revenue streams and vice versa.

• Globally, fintech companies are stepping up to help banks with anti-money laundering and know-your-customer procedures. Elliptic's crypto-asset risk management and blockchain analytics are already integrated into Silvergate Bank's platform.
• Locally, I can see a huge opportunity in Nick Mwendwa 's B2C financial services app, Swerri to offer B2B services like prequalifying consumers/groups looking for investment banking services, lending, and structured financing.
• Neobanks enable much more than debit cards and bank accounts, offering additional financial services. Wells Fargo has already announced a crypto-currency fund and other U.S. banks are said to start offering Bitcoin.

The story of Kodak's failure is one of the best-known among banking stakeholders. Many banks failed to act on fintech and are now abandoning retail to focus on corporate banking which is also being disrupted by tech platforms.

Amazon and Apple also want to offer financial services to their users, so banks need to put the customer at the heart of everything they do.

Contact me for the following outcomes.

• To discover and serve a clearly defined Market that needs you to solve its biggest problem.
• To develop a simple and effective Go-To-Market strategy
• To simplify the sales process by Productizing your solutions.