BANKING
“ Regulation is also driving change […] encouraging competition amongst the traditional players and creating opportunities for innovation ”
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— Aleksander Leicht , Head of Banking Alliances Europe , Elavon
startups to fill a niche in the finance industry they themselves encountered , or leverage technology to solve a problem that traditional finance simply cannot .
Partnerships between established banks and fintechs yield immediate advantages to both sides : banks gain the agility and innovation of fintechs , while offering decades of customer loyalty , scale and established networks in return .
“ It ’ s a delicate balance ,” says Aleksander Leicht , Head of Banking Alliances , Elavon Merchant Services ,
Europe . While increasingly open to partnering with fintechs , banks also often act as stewards for their customers : “ They serve as both a gateway to connect the merchant to the best solutions available , but also as a gatekeeper to safeguard their customers .”
Looking to Interbrand ’ s Best Global Brands Ranking 2020 , major financial institutes constitute 12 of the top 75 brands , including J . P . Morgan ( 22 ), Goldman Sachs ( 49 ), and Morgan Stanley ( 69 ). Their standing alongside household names like Apple , Disney and BMW speaks volumes about the role recognisable brands play when people decide how and where their finances are managed .
Put another way : “ You cannot expect people to switch away from the banks they have trusted for generations to something completely new ,” says Sokolov . He argues that while consumers may be happy to swap their DVDs for Netflix , or hail a cab through Uber rather than their local taxi service ,
DECEMBER 2020