FinTech Magazine - December 2021 | Page 46

“ It is only logical that we will see more partnering happening in the future ”

NIKOLAI HACK NUCORO
initially set out to replace banks and “ eat their lunch .” Many are still looking to do so . But over time , competition has evolved into collaboration .
“ Whether a bank is small or large , they ’ re all collaborating with fintechs . That could be through partnering with them , acquiring them , or funding them . It ’ s quite clear that competition has made way for collaboration , where we now live in the era of the partnership .”
A shift in perception Some experts say the shift has been due to several factors , and that the incumbent sector embracing partnerships is indicative of changes that are yet to take place .
Mahmood Noorani , CEO of Quant Insight explains , “ The banking sector is quickly waking up to the fact that partner networks with specialist fintech providers can have a major impact on performance , cost-saving , and customer services . Rather than seeing fintech companies as a threat , the big banks should see them as a hotbed of innovation that can enhance their existing services .”
Generally , says Noorani , the real push began in March 2020 – uncoincidentally at the start of the pandemic . Up until this point , small fintech operatives and incumbents had been competing , with banks in a superior position .
“ Banks have talked a strong game on fintech and innovation , but in practice , few are really moving . This has started to shift in the last 18 months . In the investment space , we ’ re already working in partnership with several major banks providing quantitative
46 December 2021