These days, fintechs are more friends than foes to banks with several collaborations between the two spheres of the financial industry
Amidst the fintech boom in Africa, there have always been talks of banks being under threat from the insanely fluid, quick and innovative fintech startups. Those early conversations depicted fintechs as disruptors and threats, but the tone has since changed.
These days, fintechs are more friends than foes to banks with several collaborations between the two spheres of the financial industry. As the relationships have evolved, fintechs and banks are leveraging on their strong points to collaborate.
In April, one of Africa’s traditional banks, Ecobank, held a Fintech Breakfast Series in Lagos and had industry enthusiasts take turns to speak on the need for collaboration and partnerships between banks and fintechs.
One of the speakers in the series was Tomilola Adejana, CEO of Bankly, a fintech startup that digitises cash for the unbanked. She spoke about how the company collaborated with banks to scale in her session.
She mentioned two types of partnerships that Bankly had with banks and two others she expects to see in the future.
1. Partnership for regulatory compliance
At the start, fintech startups often have lots of doubts about their product offerings and need several iterations before settling. Adejana advises that startups should not go all out looking for licences during these early stages.
During those test stages, Bankly partnered with banks to use their licences.
2. Vendor relationship
During those early stages, the CEO of Bankly said they used technology from banks while they were still testing.
3. Strategic investment
Adejana expects to see acquisitions and investment from these collaborations in the future.
4. Research and product market collaboration
Adejana also wants to see fintechs and banks collaborating on research and product marketing, although she also believes that the conflicting goals of both will be a challenge.