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How to Build a Successful Bank-Fintech Partnership
Getting employees on board with fintech partnerships from the start will be critical to maximizing the solution's potential. For traditional bankers who are concerned about job losses due to automation and other emerging technologies, the term "digitization" can be frightening.
Fremont, CA: As the fintech industry has grown in recent years, an increasing number of banks have partnered with these firms to improve the digital customer experience. Fintech firms have the digital expertise that banks require, but these fledgling collaborations will necessitate more careful planning to deliver effective solutions.
According to a recent report, only 6 percent of banks have seen more than a 5 percent improvement in reducing customer churn through fintech partnerships. And nearly 40 percent said there had been no changes at all. This is most likely not due to a lack of effort or skill on either side. Fintech companies can still add significant value to the table, so the solution isn't for banks to abandon formal partnerships for good. Instead, banks must collaborate with fintech partners to create specific value.
Communicating Clearly with Employees
To begin with, banks must seek out fintech partnerships to solve specific problems. Goals can be hazy and impossible to achieve without a clear understanding of what a bank requires from a fintech partner. The more open banks are about the problems they want to solve, the better their fintech partners will understand how to provide a solution. One should assess one's current state of operations to identify specific challenges and gaps in one's ability to overcome them. Then, banks should look for a fintech company that is ready to fill that void.
Trying to Improve Employee Experience
Getting employees on board with fintech partnerships from the start will be critical to maximizing the solution's potential. For traditional bankers who are concerned about job losses due to automation and other emerging technologies, the term "digitization" can be frightening. This is where a fintech partner can help by designing robust workshops and other educational sessions to demonstrate to employees how fintech can help them do their jobs more efficiently and provide more value to customers. The more employees embrace digital transformation, the more innovative thinking and growth one will witness in the future.