Debating Bank Innovation

Note from the CEO: There is nothing better than a good old smack down fight………..oh, wait a minute, I mean debate. After all, FintekNews is very high brow and all that. Seriously, a fintech entrepreneur and a bank’s head of innovation had a very serious discussion on digital disruption and that development in the financial services sector. Interesting.

Almost daily we read of how banks are constantly seeking ways to enhance their customer’s banking experience with new innovation and, again daily, how fintech startups are entering the banking field with new technology in place. So, in this “race” there is confrontation as to who is on the right track and moving faster. Can get a little acrimonious at times as this debate between a startup (Currencycloud) and Lloyds Banking Group shows. A very interesting read………..and it ends well. No blood.

“In the world of financial services, big banks and fintech startups are often depicted as mortal enemies, banging heads and clashing swords in the battle for customer loyalty. The popular narrative is a ‘David and Goliath’ story of plucky upstarts standing up to larger, more established bullies.

Indeed, some start-ups have enthusiastically embraced this narrative: peer-to-peer currency exchange specialist TransferWise, for example, frequently criticises cross-border bank charges – not without good reason – and presents itself as offering a better alternative for customers.

In reality, however, the situation is more nuanced. Alliances and collaboration between banks and fintech companies are by no means uncommon. The venues where their closest collaborations take place are, more often than not, the ‘innovation labs’ established by the big players in financial services.”

Source: Diginomica