For most French banks, the benefits of working with innovative startups outweigh the costs involved. They believe that "technology" and the "regulator" play an essential role in these exchanges.
Improve the customer experience while reducing operating costs
A global survey of 774 financial and banking institutions in the USA, UK, Singapore, Germany, Hong Kong, the United Arab Emirates and France, carried out before the Covid-19 pandemic by Finastra, shows that strategic partnerships with startups are on the increase and are perceived as a success by banks. Indeed, almost 9 out of 10 banks see collaboration with fintechs as a lever for success. More specifically, 79% believe that partnerships with these players offer "benefits that outweigh the costs involved".
Faced with the rapid pace of technological change, banks see startups as potential allies. In recent years, several banking groups have entered into partnerships with fintechs tooffer their customers better services without having to develop their own systems. BPCE, for example, has acquired Fidor Bank and LePotCommun.fr, BNP Paribas has bought Compte Nickel, and Crédit Mutuel has snapped up Leetchi and MangoPay. The majority of banks are now ready to take the plunge and improve their customer experience while reducing operating costs.
Apis, AI, Blockchain will be the most widely used technologies in the coming months
Asked which technologies they plan to improve or deploy over the next 12 months, banks most frequently cite open APIs (42%), Artificial Intelligence (40%) and Blockchain (34%).
The use of APIs to share account data with a third-party service provider now seems to be seen by banks as a lever for innovation. However, there is still a long way to go. Only 30% report that Open Banking is already having a tangible impact in improving the customer experience.
Financial incentives dedicated to innovation
Half of the banks surveyed would like to see more government or industry support for innovation, 18% more than the previous year. As for regulation, the organizations encourage the government to "better understand its impact on innovation in the sector".
This study shows that the terrain and mindset are favorable to the development of collaborations between banks and fintechs. One thing is certain: banks need to work with startups now if they are to respond effectively to the needs of the end consumer.