The financial services sector has undergone significant changes in recent years.
Banks used to look at technology with hostility. According to fintech and payments expert, Peter Tapling, “five years ago, if we were to have this conversation, I would have told you that the banks look at fintech as a very much us versus them – whatever they do is stuff that we could do.”
They saw fintech companies as competitors who could take business away from them. These days however, today’s financial institutions are now eager to embrace fintech. Tapling, who spent 15 years as CEO of authentication provider, Authentify, before advising a range of financial services companies, says that the industry is “shifting a lot” and integral to this mindset move is that financial institutions are ready to partner with fintech companies so they can offer new services and penetrate new markets.
Looking at the rationale behind this, Tapling talks about the difficulty around large organizations building brand new bank initiatives. To that end he mentions, “if you look at the way we do development these days, fail fast, build something small, minimum viable product, that’s not the way a big bank works.” Instead, banks look to partnerships to fill in that gap.