FinTech Magazine - December 2021 | Page 48

BANKING
reform and innovation from within is hard , if not impossible . Connecting an existing stack to something that runs mostly outside your architecture can sometimes be the only way forward to do anything meaningful new at all . And it buys you time to work on the restoration of the core and transition your organisation bit by bit instead of all at once .
However , any large-scale move cannot be without consequences . Hack advises that there are aspects to be mindful of . He says , “ You have to be aware that you won ' t be building up native IP and owned capacity in whatever area you are partnering in . The core expertise for a technology , process , or product will sit with the player you cooperate with , not with you .
“ It is unlikely that you want to be , or can be , an expert in all fields that collectively make up your business proposition . Hence this focus on what matters should probably help .”
Despite this drawback though , on balance , as long as companies do their homework and make the necessary preparations , partner networks are a good idea . He continues , “ You have to rely on the partner to do their job right , probably without knowing much about their secret sauce . Since you are more likely to partner in areas that you are less familiar with ( which is the reason why you are partnering in the first place ) you have to make sure that a proper due diligence process is in place .”
Pruteanu expands on this point , saying that partner networks can help to build a wider range of complimentary services and products to acquire more customers and boost profitability .
“ To avoid problems , there are essential requirements that need to be in place . For example , there must be trust between parties . Without mutual trust , especially in a world where data privacy is becoming paramount , the relationship will be problematic .
“ Moreover , financial service providers need solutions to any problem . Any collaboration must deliver a tried and tested holistic solution rather than a bundle of different and hard to connect tools .”
48 December 2021