A virtual banking application empowers the customer to pay bills and transfer funds using a smartphone or computer. The perfect complement to paperless accounting, virtual banking is quickly becoming the financial industry standard.
Banks have had to adapt because today’s customers want access to their accounts on their terms.
Fintech and Banking: Collaboration for Growth
It this environment, the forward-thinking bank views the virtual banking startup not as a problem, but as an opportunity for collaboration. With joint projects, both banks and tech-focused financial companies have opportunities to expand their offerings to their customers.
Integrating digital innovations can lower overhead costs, increase efficiency, and improve regulatory compliance.
This is precisely why Wells Fargo recently formed an artificial intelligence working group with four early-stage financial technology startups. The bank and fintech groups collaborated through the Wells Fargo Startups Accelerator, creating customized services for enterprise clients. The group focuses on innovations in data analytics, payments, security, and other promising areas in fintech. Collaborations can explore the full potential of financial technology and meet the evolving expectations of a tech-savvy clientele.
Working with fintech startups can provide innovative ways for any bank or financial firm to seek growth. A partnership with fintech can augment current protocols and products and, over time, and make fintech an evolving part of the institution’s growth strategy.
Fintech and Banking: Collaboration For Disruption
It might come as some surprise that perhaps only a quarter of U.S. banks reportedly engage with financial technology companies on a regular and serious basis.
This presents a leadership opportunity. Banks that get on board with virtual banking can broaden their market reach—and reach higher returns on equity.
Most consumers today know about virtual banking applications, and value them. Half the population of bank customers already pays bill and transfer money online. And fintech adoption is expected to significantly increase over the next few years. Customers who already benefit from virtual banking applications don’t just expect their bank to offer the best digital experience among banks; they expect their bank to be out in front of all industries in digital advancements.
Financial services that take the lead are helping to create new industry standards as virtual banking becomes the norm. Third-party services such as Liveoak Technologies help banks meet their customers where they are—on their devices, in their homes, or wherever they may roam.