Partnerships between FinTech and Banks come out of almost every survey, and the big fear factor is being offset by benefits.
When it comes to partnering with banks, financial technology upstarts find themselves damned if they do, damned if they don’t. Fintech firms that don’t partner with banks are often at risk when big banks come into their niche, or when market forces turn against them and they don’t have deposits to fall back on. Many online lenders have learned that the hard way this year. On the other hand, startup firms that do partner with banks can be subject to all kinds of scrutiny and criticism. They are seen as capitulating to incumbents, and increasingly come under the watchful eye of regulators.