Online news source PaymentExpert recently interviewed FundKite CTO Alex Shvarts on the relationship between Fintech and banks, and whether or not they were likely to compete or collaborate in the future. Titled “Fintech Growth Is Forcing Banks To Up Their Game,” the article discusses how both sectors of the industry have (and have not) changed over the years and what this means for consumer needs.
It starts as follows…
“Fintech is undoubtedly driving the digital transformation of the financial sector – only recently have banks begun tailoring for modern consumers. Many banks have turned to fintech firms for advice or to use their services and the continuous development battle has only pushed expectations within the financial services industry higher.
“PaymentExpert spoke with Alex Shvarts, CTO of FundKite, a fintech company in New York that provides funding to small businesses across the US, on these relationships and what the future holds.
“PE: What is the way forward for banks in the digital age – collaborate or innovate alone?
“AS: Banks are finally pushing to innovate, often doing so alone but by copying the digital based fintech industry. Fintech is already built with a digital infrastructure, customer first focus, ability for speed of action and very importantly a mind for innovation.
“Banks aren’t able to create programs to immediately respond to clients’ needs like fintech companies are. Fintech streamlines complex financial processes, making it more accessible – forcing the sluggish bank system to react.
“Banks are picking up their pace and beginning to offer new programs. Right now, banks and fintech are sticking to their own niches of long term loans and short term funding, but as the industries change, we could see a merge into each other’s markets.
“No matter what, the consumer is the focus and will come out winning.”
The interview continues with additional questions about the two industries and how the very similar financial products are still very different. As the digital age progresses, many business leaders are eager to predict where the lending and funding industries are headed for both consumers and businesses. Finish reading the full article by following this link to PaymentExpert.
For more on why small businesses are turning to alternative forms of funding, click this link.