Over the last decade, neobanks and fintechs have established themselves as key players in the financial industry, with more customers than ever before choosing their services over traditional banks. As the pace of change quickens and competition heats up, partnerships between banks and fintechs are becoming increasingly sought after.
At Wise Platform, we work with more than 50 partners and see first-hand the benefit of fintech-bank partnerships. Here are 3 reasons why we believe they are the key to creating financial services fit for the future:
- Partnerships help banks expand their offer and stay ahead of competition without dedicating significant resources.
Banks face stiff competition, with rival banks offering a broad array of products and services designed to keep pace with a customer’s evolving needs. Deciding where to prioritize innovation in a market that is rapidly demanding more digital products can be difficult.
On the other hand, many fintechs have grown market share by specializing in a core product. This specialization and ability to iterate quickly creates a unique expertise among these fintechs. Customers are responding to this specialization. The most recent figures show that 75 percent of consumers globally* have adopted at least one fintech for money transfer and/or payment services. Indeed, at Wise, we now have over 13 million personal and business customers worldwide who use us when sending and spending money abroad.
Banks have an opportunity to bring these specialized fintech products directly into their own offering, recapturing and protecting their customer base by having leading products available in one place. Partnering with fintechs that have developed a unique product differentiation enables banks to provide customers the convenience of having a single source for the best product offerings, and a simplicity customers are placing a premium on today.
2. Partnerships are a quick, easy way to boost customer retention and growth.
Offering new services that make customers’ lives easier leads to greater customer satisfaction, retention and growth. Making customers’ lives easier can mean saving their time and energy, and of course, their money, too.
Earlier this year, Wise Platform partnered with Tiger Brokers (Singapore), an Asia-based trading platform that allows retail investors to easily and cheaply invest overseas. The build, which took just one month, has already led to customers saving, on average, $200 annually.
“Partnering with Wise Platform has been a quick, easy process. Most importantly, it’s improved our product and offer to customers. We’re able to offer savings to our customers, which they can either invest or pocket. We’re excited to grow and develop this partnership. ” – Henry Toh, Chief Financial Officer, Tiger Brokers Singapore.
3.Partnerships are a fast-track ticket to expertise and experience.
Through partnerships, banks can tap into the expertise of fintechs who have spent years developing a single product. Banks can incorporate a product without having to assume lengthy research and development efforts of their own. With Wise, partners gain access to an advanced platform and digital user experience along with the expertise of over 600 engineers focused solely on international payments..
Therefore, Wise Platform not only saves banks and large businesses from having to invest in building or upgrading their foreign exchange infrastructure, it also enables them to benefit from our scale and expertise.
By taking advantage of readily available fintech infrastructure, banks disincentivize customers from searching for alternative banking solutions and gain a foothold with future generations of consumers. By striking while the iron is hot on partnerships, banks can offer new services, retain and grow their customer base, and ensure longevity in an increasingly competitive market.
To find out more about how a partnership could transform your offer, contact us today.
Wise Platform is Wise – but for banks, large businesses and other major enterprises. It allows our partners to utilize our infrastructure, meaning they can embed the best way to send, receive and manage money into their existing infrastructure, creating value for their business and customers.
Over the past decade, Wise (formerly known as Transferwise) has built a global payments infrastructure that has revolutionized how money moves around the world. Now, thanks to Wise Platform, other companies can gain access to our industry-leading, reliable service seamlessly. We save partners years of development costs and growing pains, allowing them to innovate quickly and serve, retain, and grow their customer base.
Note to Editor
*75% percent of consumers globally have adopted at least one fintech for money transfer and/or payment services – Statista.