Traditional banks are facing up to big challenges right now. Buffeted by soaring inflation and interest rates, their customers are keen for new features to help them manage their money yet many of these financial institutions are looking to reduce their operational spend due to the same headwinds.
New research by financial software provider Finastra suggests that banks will turn to fintechs to solve the problem. Its poll of almost 750 banking leaders from across the globe found that 56% of respondents want to make use of a network of integrated fintech solutions, with only 6% preferring to build functionality in-house. Some 75% of banks plan to engage with an average of three fintechs over the next 12 to 18 months.
“The main takeaway from our research is that financial institutions recognise they cannot operate in this challenging environment by working alone, and that fintechs can play a valuable role in helping them thrive,” says Isabel Fernandez, EVP for lending at Finastra.