Collaborations between banks and fintechs are on the rise, but as we all know, the two organizations often bring very different perspectives to the table. While banks can offer capital along with access to markets, they must comply with an increasingly burdensome regulatory environment. That means that when a fintech company enters into a collaboration with a bank, it may suddenly face the proposition of becoming a regulated entity while working with limited resources. On the other hand, risk-aversion on the part of banks coupled with lengthy internal review processes can lead to lost opportunities with potentially significant partners. The choices the parties make about the financial and legal structure of a collaboration can help alleviate certain burdens, but may involve other trade-offs. To foster successful collaborations, banks and fintechs need to consider the culture of the other party and the unique challenges they face. For fintechs, this can mean a lot of due diligence about the regulatory constraints facing their potential partners, a task that can seem overwhelming when trying to act on a tight timeline. Banks, on the other hand, must confront the importance of the funding cycle for their fintech counterparts, and increase their own creativity to enable new and different partnering structures.
Join us for an informal, interactive panel with experienced bankers and fintech founders discussing lessons they have learned from their own fintech-bank collaborations and advice for those looking to develop fintech-bank collaborations.