Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
iStock 1442749118
iStock 1442749118

Big Tech in banking: Not a threat but an opportunity for fintech


Big Tech in banking: Not a threat but an opportunity for fintech

By Fernando Zandona, Chief Product and Technology Officer at Mambu

Big Tech making an increasing presence within banking may be viewed by many fintechs as major competition from reputable companies with an unfair advantage.

However, the more Big Tech companies move into the market, the better, for the end customer. These moves push fintechs to be more nimble and efficient, while, in turn, fintechs and neobanks push traditional players to expand their digital offerings in order to remain competitive. This healthy competition is just that, healthy. It drives innovation from both sides, and here’s how.

The current market: neobanks versus incumbents

Our research has found that a third of banks are unable to deploy updated or new products at speed, and with the current war for talent, many banks are struggling to find qualified employees with the skill sets needed to operate the new technology. In addition, over a third don’t have the appropriate systems to support new workforce models. This is why two-fifths of senior executives intend to modernise their platform and plan on doing so through partnering with third-party providers. This can enable established banks – who likely have enough funds – to launch speedboat projects and use this as an opportunity to grow faster.

This is where the ‘Evolvers,’ as cited in the research, race ahead. By working with fintech partners to quickly respond to consumer demand, Evolvers are able to harness cloud-based platforms to deploy flexible financial products and achieve a seamless transition to digital.

Neobanks and fintechs may have the innovation and agility but they lack the expansive customer base of the Big Tech players. In order to survive, they have to react to growing customer demand quite quickly. If you consider the high demand of customers wanting a seamless experience of banking, neobanks need to ensure they regularly launch new products that meet the latest customer trends. To do this, they’ll need to leverage the orchestration of the ecosystem.

Both incumbent banks and neobanks will innovate in similar ways, but their starting points will ultimately be different.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Big Tech, Big moves

On the surface, Big Tech moving into banking may be seen as a huge threat to fintechs as Big Tech is entering the space with strong reputations, large amounts of money, and advanced capabilities on their side. However, Big Tech in banking is really an opportunity for all of us to become better.

The more innovation and disruption in the market, the better the experience for the end customer. Big Tech drives innovation for additional products and offerings, which ultimately make consumers’ financial lives easier. We’ve seen neobanks and fintechs continue to push traditional banks to develop products needed to meet customer demands with offerings such as ‘Buy Now Pay Later’ entering the market, which took the consumer payment space – and is now taking the B2B payment space by storm.

It’s undeniable that Big Tech is redefining financial services and expanding the digital ecosystem, which, in effect, is pushing fintechs to be more nimble and efficient. Apple expanding their range of services around payments gives them access to the data and algorithms for immediate opportunities. It also provides a more general platform for exploiting open banking to obtain financial institutions’ data for future opportunities.

What’s next for Big Tech in banking

If traditional banks want to drive growth and stop their customers from jumping ship, they need to act fast. This is needed now more than ever, with Big Tech players making big moves and highlighting how ripe the market is.

Last year alone we saw Apple continuing to innovate with their ‘tap to pay’ solution for merchants. It won’t be long before we see others taking advantage of the opportunities already sought by big players including Apple, Google and Amazon.

When facing doubts about the future, banks should look to financial ‘Evolvers’ for guidance. By placing the customer experience and progressive mindsets at the core of their business, they have proven that traditional banks can also do the same, and continue to play an important role in modern society.

Recent Post: