Traditional Banks in the Payments Sector
Banking in the traditional sense has become archaic – and consumer payments are becoming more and more invisible. Despite being a global economic staple, traditional banking has found way to stay relevant in these changing times.
The use of mobile banking channels has obviously seen a significant influx of users since the COVID-19 pandemic, with an increase of 20-50%. A need for a more customer-focused financial experience has been the ongoing trend and payments companies are looking to provide this.
Traditional banking will never go away completely, but FinTech is changing the payments industry. Can the two collaborate for the ultimate user experience?
Key Trends in the banking and payments industry
One of the key trends over the past several years being the rise of digital payment vehicles. Since the COVID-19 pandemic, the contactless transaction world has hit a new high, and customers have begun to expect this digital push from vendors. Companies like Starbucks have made it easy for customers to buy a cup of coffee through an app on their phone – making more transactions than ever before.
Traditional banks are aware that many of these new experiences are happening with FinTechs and Neobanks, and considering how they will stay relevant through the rising digital era. Many banks have taken this as an opportunity to adapt and offer additional services to their customers.
We’re beginning to see Payments FinTechs and Traditional banks team up to bring the ultimate solution.
Advantages of FinTech x Traditional Bank Collab
Collaboration between banks and fintech’s has driven considerable innovation in the international payments market in recent years. Having traditional banks and Payments FinTech companies collab can lead to a…
- Broadened customer base – The collaboration allows for both entities to tap into each other’s customer bases, allowing for FinTechs to reach an older audience while banks can reach younger.
- Chance to scale up – Giving banks the access to FinTech products, traditional banks would be able to scale up their products, and offer new services they haven’t previously been able to.
- Reduction of costs – When using each other’s opportunities to scale up products, traditional banks can begin using these without having to build their own from scratch.
- Appeal to the traditional approach to money – Finances are something most age groups are conservative with. Using the reputation of traditional banks, FinTechs can benefit from these services and build a trusting customer base.
The Payments FinTech and Traditional bank alliance has a lot of positives, but what big banks are actually taking advantage of this partnership?
Deloitte x Volante
Volante and Deloitte made the strategic partnership to offer their clients an innovative new service that enables financial institutions to transform how they run their payments business. Volante’s cloud-based technology solutions for financial institutions will now include added insight and integration services from Deloitte as part of a broader strategic alliance agreement.
Horizon Bank x MOCA
MOCA and Horizon Bank had formed a partnership with each other in an effort to offer MOCA’s advanced card-based payment solutions to its customers. Horizon Bank wanted to focus on technology that provided its customers with native mobile payments services and the ability to create purpose-driven cards.
Atom Bank x Faster Payments
Atom Bank and Faster Payments has joined forces with the Faster Payments Scheme as a direct participant and migrated all traffic across its retail deposit book to the real-time payment scheme.
Recruitment in Payments
We’ve seen an uproar of payments companies looking for ways to differentiate themselves, while simultaneously looking to become part of the technology solution. Finding top talent is at the utmost importance for FinTech startups, to ensure they bring their A-game to the crypto world.
From electronic bank transfers and mobile payments to buying now pay later, we connect payments startups and scale-ups with mid-level, senior, and executive professionals. Get in touch with one of our specialized consultants today if you’re searching for senior, mission-driven talent to lead your Payments firm.
The Payments Industry isn’t slowing down, and many companies are changing the game every day. We strive to connect disruptive FinTech companies to top FinTech talents to help companies scale. We connect experienced professionals that can help scale and build the next FinTech app that will disrupt the industry and improve consumers’ financial well-being. Contact us now to find out how we can support you and your startup to success.