Fintech partnerships are crucial for banks to stay competitive, increase deposits, and deepen customer loyalty. With an increasing amount of competition, fintechs can differentiate themselves by understanding the bank’s perspective when engaging with them.
To establish a comprehensive partnership, fintech firms should go beyond singular solutions and grasp the pain points that prompt banks to seek new collaborators. Addressing bankers’ apprehensions about change and emphasizing the human aspect of banking is critical.
Cast the Vision
Before the implementation begins, cast a clear vision. This provides a tangible path for bankers to know the transition process. If presented with the complete picture of transformation from project kickoff to a working solution, the bank partner sees how to go from their current state to a future one. In the sales process, fintech leaders will often talk about the endpoint and what the solution might do, add, or solve for the bank, but how will they get there?
Address the fear of change with the bank partner. A bank chooses to enter into a relationship with a fintech partner for many reasons. They can range from struggling to provide a service they can not currently offer to immediately needing a change due to functionality issues, among other issues.
Regardless of the “why,” the consistency they all share is that banks are undergoing tremendous change. Change is intimidating, especially when bankers consider transitioning current workflows, retraining teams, and finding internal resources to champion projects to completion.
Before kicking off a significant initiative, providing the steps necessary for a successful implementation is vital. Present bankers with guidance and transparency when discussing what will be expected of their team. Start building that trusted relationship from the beginning. Let them see the value of a fintech partnership beyond the solution.
Make it Easy
Successful partnerships between banks and fintechs require an immense understanding of implementation challenges from both sides. For fintechs, banks need to understand the change necessary for success. For banks, fintech partners need to acknowledge the amount of data and systems running in conjunction with the solution they hope to provide.
Be upfront in addressing the possible roadblocks. Fintech partners who ask the more challenging questions display the transparency needed for a successful relationship. This allows the fintech and bank to anticipate issues and can help make the processes as easy as possible. It is important to remember that “easy” looks different for each bank.
Help Bankers Make Progress
The ultimate goal of any partnership is to solve a current struggle for internal users and most importantly their customers. A considerable part of banking is the human aspect, which drives loyalty beyond the financial solution. It is easy for fintechs to be disconnected from the human element of this industry that bankers engage with daily. Fintechs do not need to be experts in every banking aspect, but they need to understand how end-user experiences drive banking decisions.
Engaging with potential bank partners with transparency and understanding from the beginning jumpstarts a positive and prosperous relationship.
