Banks and Credit Unions Seek Fintech Partnerships
According to a new report, a majority of bank and credit union executives believe that partnerships or collaborations with fintech firms are important in 2019, especially in the areas of digital account opening, payments, and lending.
The report, by Cornerstone Advisors, surveyed 305 senior executives at banks (60 percent of respondents) and credit unions (40 percent of respondents) during the fourth quarter of 2018. The vast majority of respondents are from financial institutions between $500 million to $20 billion.
Approximately 20 percent of bank and credit union executives believe that fintech partnerships, collaborations, or investments would be very important in 2019. An additional 28 percent of banks and 40 percent of credit unions believe that fintech would be somewhat important.
When asked where banks would focus their partnerships or collaborations with fintech firms, 98 percent of those surveyed said lending and credit; 96 percent said digital account opening, and 90 percent said payments. When credit union executives were asked the same question, 99 percent said digital account opening; 96 percent said payments; and 90 percent said lending and credit.
The survey also asked banks and credit unions to rank their business objectives when partnering or collaborating with fintech firms. Both groups said that improving customer experience was the most important objective, followed by creating new capabilities and strengthening core competencies.
The report made clear fintech firms will continue to grow in importance despite their already rapid growth in recent years.