Financial Institutions Looking to FinTechs to Boost Customer Experiences

A new study conducted by East & Partners on behalf of Finastra Finastra has revealed that 75% of global banks plan to collaborate with up to three fintech startups within the next 18 months in order to boost their digitalization efforts. The study, which entailed 783 interviews with banks in North America and Europe, found that 56% of respondents want to connect with an integrated platform of fintech solutions, while only 6% prefer to build capabilities in-house. The biggest motivation for these collaborations was to reduce operational costs, followed by the deployment of new technology and better compliance needs.

The study also revealed that European banks are investing heavily in digital transformation, spending an average of USD 886 million per year (as compared to the global average of USD 367.6 million. Interestingly, only 20% of banks think they are ahead on their digital journey.