Co-opetition : top partnerships that are changing the game in fintech

Banks competing with fintech? Those days are past. The future of fintech is one where the new and the old are coming together to rewrite the rule books.

Source: How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines

Why partnerships?

There are many good reasons and use-cases for fintech businesses partnering with each other —

  • Getting access to new market segments
  • Launching new offerings for existing customers
  • Acquire complementary and alternative intelligence
  • Enriching customer engagement

Top partnerships in recent fintech history

Here are some stories of how fintech businesses are partnering with each other to learn better, together —

  1. Salli Mae + Deserve

Checklist for partnerships

Being ready for data partnerships is as much a journey as it a destination. There are various best practices that a team must adopt to make partnering a smooth, safe, and human process —

Source: How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines

Challenges in partnerships

Rewarding as they are, cracking partnerships in fintech is easier said than done. Here are some top challenges to solve for supercharging fintech partnerships :

  • Data privacy and protection: In many cases, the root cause of friction and tediousness in a partnership is a system that is not designed to be privacy-first — making sure that any data exchanged does not contain sensitive and personally-identifiable-information (PII)
  • Complex compliance and regulations — Related to the above point, increasing data residencies and local regulations make it difficult to govern and moderate data access in a way that you not only adhere to but remain future-proof and human-centric.
  • Faster experiments and time-to-market —Great partnerships need to start off with solid POCs/Pilots, and then, achieve results (and failures) at a good pace. Often, the potential of partnerships gets locked in administrative pressures and time delays kill the momentum.

Footnote

This article was inspired by the work of the Center for Financial Inclusion and their report — How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines. We believe in a future where data-science and AI can make lives better, together.

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