Microsoft predicts future of bank and FinTech partnerships

Banks partnering with FinTech companies to offer a wider range of services is likely to become a significant trend in future, according Microsoft’s financial services industry manager.

“There will be an integration process, with the bank sitting in the middle and instead of trying to push old product, it will help bring customer data from third parties to make better decisions,” said Marcus Martinez, financial services industry manager, EMEA, Microsoft UK, speaking at the virtual Branch Transformation conference.

“A large proportion of these clients would pay for this convenience – small businesses for example; if it will save time, they’d would pay the bank to manage a third party. Banks can leverage working with FinTechs.”

Martinez predicts that the future for bank relationship managers is not selling products but more about acting as an orchestrator.

Traditionally banks have had so many internal capabilities because in the past the transaction cost was much lower than buying elsewhere, he added.

“Now it’s much cheaper to partner with aggregation services, so there will be a push towards partnerships,” explained Martinez. “Banks are still focussed on being compliant, historically this is the most important thing for a bank…but this needs to be balanced with innovation, we need more competition, we need new entrants, the regulation can’t be an obstacle."

He explained:“The reality is the customer is surrounded by different systems is financial services, how to place the customer in the centre. They need to be served by different sectors of the economy and financial services must be embedded and value added.”

    Share Story:

Recent Stories

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.