FinTech and banking – a war, or a promising cooperation?

These days, it’s not just banks that fight for customer trust and convincing them to use them to store money. FinTechs have joined this fight too. The opinions on whether this means war or symbiosis are divided, but one thing is certain – the customer will always benefit from this!

The fact that customer trust and convincing them to use the offered services and be loyal to the company is the key to success on the Financial markets, has been obvious for a while. Those are the challenges both banks and FinTech companies face, although each of them is in a very different position.

Good models are worth their weight in gold

Providing a good User experience, equal to the one provided by FinTech, is one of the biggest challenges banks face right now. It correlates to correcting the key aspects of customer contact, meaning redesigning some difficult paths and providing the customer with financial advice in an approachable and easily understandable way.

FinTech have significantly impacted the model of management of financial institutions. Drawing inspiration from start-ups leads to creation of mini-organizations in banks that can be responsible for particular areas of activity of the institution, which lowers cost and provides better development opportunities.

Different markets, different customer sympathies

Not all markets mean equal chances for financial start-ups to compete with traditional banks. The reason for that is the fact customers have different needs and expectations from the financial institutions. The percentage of society to which it applies varies, depending on ex. The maturity of the market. Based on the data developed by the Spanish BBVA, we can see that needs concerning on the speed of services dominate in the developed markets. In developing markets things are different: there, customers care the most about transparency of the services and offers.

Legal regulations and the climate for innovations have a big impact on the development of start-ups, and that also applies to the ones existing in the Financial market. That’s why the situation of FinTech companies is different in every Financial market, because each country regulates it differently. In recent days, we can see the changes in approach of the regulators to increasing competition in the market through stimulation of development of the FinTech industry more and more often.


The regulators can benefit the innovative climate of the markets for example through making legal activities of small financial companies easier, increasing the elasticity in the approach to licensing, and creating so-called legislatory sandboxes, or cooperating closer with even the smallest FinTech start-ups.

A good example of a country that opened itself to financial start-ups is Brazil. Introducing Financial market regulations created an increase in trust, and a bigger allocation of customer finances in FinTech.

The victor: The Customer

So what changes can we expect in the future, and who will gain the most from increasing variety in the Financial market through modern, innovative FinTech companies?

FinTech will significantly change the way banking functions and is seen. Banks need to transform into trusted brands and get to know their customers anew – respond to their needs and lifestyle, let themselves get known as a friend that can offer adequate help with the needs of the user. Banks need to fight with the notion of thinking of customers as just finances, and instead offer them problem solving on click, on demand, in real-time.

Banks can use good models of function that are already in use by financial start-ups. They often take over the smaller companies, and use their internal know-how. Such an umbrella approach appears to be the best solution – a win-win situation. The additional victor is the customer, who receives both innovative solutions designed on the highest level, and feel of safety coming from a Highly trusted institution.