Assessing the Fintech Digital Gameboard
Two weeks ago I wrote about the position of strength that banks are operating from in their Fintech relationships. But, many banks are failing to take advantage of what Fintechs offer. Too often, banks pursue an incremental approach, addressing specific one-off problems rather than considering their own and their customer’s digital needs more holistically. I ended that column saying that many banks still do not know how to work with Fintechs or establish internal priorities.
Last week, we reprinted an article I wrote for BAI Banking Strategies (by the way expertly edited by Lou Carlozo) that focused on the need for banks to consider a dynamic due diligence process when dealing with vendors, based upon a bank’s changing needs and continuing shifts in the Fintech environment. Bank pursuing an incremental approach (based one or more near-term “pain points”) should manage partner selection and due diligence with their potentially changing requirements in mind. The article suggests a three-phase approach that includes a bank reconsidering its initial decisions, as circumstances change.