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Wise: Banks will face death by a thousand fintechs if they don't collaborate with new innovations

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The thought of “coming together” and “partnerships” have historically not conjured up images of banking, yet, today, the banking sector is very familiar with these terms. Banks face fierce competition competition from countless specialist digital fintechs, with the ability to adapt and innovate quickly to solve customers’ specific problems. Efficiency is at the core of fintech.

For banks, built around largely domestic, in-person legacy systems, the challenge fintech poses is increasingly existential. According to estimates from McKinsey, banks must make cost improvements of 30 per cent across customers’ experience and payments in order to sustain investment and profitability in the competition with fintech.

As a consequence of this tension, many more banks are partnering with fintechs. These partnerships allow customers to access fintech products through their own banking platform. For example, Minna Technologies partnered with several banks, including Swedbank, to help customers manage their subscription payments. A partnership between........

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