Schalast | Cooperation instead of confrontation
If you ignore all the challenges and differences between established banks and FinTech companies, what are the opportunities for these two systems, which are already moving towards each other?
The number of cooperations concluded between banks and FinTechs is steadily increasing - and that is hardly surprising. Against the background of the strict regulatory requirements for products requested by customers, FinTechs are dependent on banks’ expertise and existing licenses. Cooperation with banks is important for FinTechs and the development of their business models in order to become or remain competitive in the disruptive and highly competitive market.
Especially against the background of the current Corona crisis, the financing business could represent an opportunity for both FinTechs and their cooperation banks. Many small and medium-sized businesses are currently struggling with serious liquidity problems. FinTech financing solutions, such as factoring models, could represent a faster and more flexible alternative to conventional loans. In order to offer these models to customers, FinTechs and banks work closely with one another.