Banks and fintech companies currently operate in different areas of the finance world. Banks are always looking for non-interest income as a method of growth and fintech startups such as TPF need to generate revenue. The obvious solution to this is a partnership between the two, a win win. Banks can offer services that would take them years to develop and they help fintechs scale distribution faster and more cheaply than they could on their own.
This on its own should be something that drives business on but finding banks that are willing to go ahead with a partnership like this are few and far between. This is because their priorities lie in different areas. Most banks will want a great customer service experience as their highest priority. This makes sense as often one bad experience can cause a client to take their business elsewhere whereas a well running machine is what is expected. However, expecting a fintech startup to spend enough to match the levels of customer service found at big high street banks is unrealistic.
This cost/benefit analysis is something that banks feel leans too far to the costs and does not see the benefits a partnership with fintech companies can bring. In a highly competitive market these are the kind of things that can make you stand out.
There are several excellent partnership ideas that can be provided. A big one of these could be something like subscription management. The average person has ~10 active subscriptions, from Netflix and Spotify through to health and wellness apps such as Classpass. Tracking all of these through your bank is tiresome, but doing so with a partnered fintech company such as TPF means that you can access these in one place with ease. This allows for easy comparison with other subscriptions as well as easy cancellation.
