Traditional Banks Warming Up To Collaborating With FinTechs
2 Mar 2021 — In order to take advantage of the solutions that FinTechs bring to the table, more traditional banks are warming up to collaborating with them in recent years.
KPMG International’s global FinTech study reveals that financial institutions are addressing FinTech on a continuum: from building solutions in-house, or sourcing third-party solutions, to partnering or acquiring them outright to accelerate speed to market.
Banks are careful when it comes to partnerships especially if they are not regulated. Accordingly, JP Morgan is supportive of cryptocurrencies as long as they are properly regulated, and it has taken on two well-known and regulated bitcoin exchanges, Coinbase and Gemini, as banking customers in May 2020.
As banks and FinTechs continue to form new partnerships, regulatory risk is becoming an area of concern. To the banks, one key factor to consider when looking to partner with or invest in a FinTech company, is whether it is regulated or not.
Banks working with regulated FinTechs will not have to fear regulatory risk and compliance requirements, as all of their partnership activities are in compliance with traditional banking regulations.
If you’re interested to work with a regulated FinTech partner in wealth management solutions in crypto, contact Propine now!