Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Does MWC prove that banks and fintechs now want to work together?

Blog
7th April 2017

webhelp-mobile-hero

The latest Mobile World Congress (MWC) event recently closed in Barcelona. MWC is the biggest annual gathering of the mobile phone industry and has traditionally been a showcase for the future of phone handsets and product launches, but in recent years it has started focusing on the businesses that are enabled by mobile technologies.

Banking and financial services is one industry that is currently being transformed by the business culture of the app store. Startups are able to identify very specific financial services, such as loans or international money transfers, and offer a service that is cheaper and easier to use than that offered by traditional retail banks.

While banks still have the advantage of their brand and millions of existing customers, some of the new services are making an impact. In particular, these financial technologies (fintechs) are showing just how far behind customer expectations the banks really are.

Customers are already used to Uber getting them a car in 2 minutes, TripAdvisor tells them where the nearest Indian restaurant is located with walking direction, and where they can find a cheap place to stay tonight. Mobile apps offer all this flexibility in other areas, yet in banking even the apps are mostly just offering a mobile version of the service available in a branch, or at the ATM.

But MWC showed that there may be a new way. The fintechs don’t need to fight the traditional banks. There could be the potential for banks to instantly improve their service offering by partnering up with more innovative young startups. PayPal has signed 11 partnership deals recently. Visa is creating an innovation centre in London where they will test out ideas with startups. Citi and Caixabank both featured during MWC innovation sessions stating openly that they are looking for partnerships.

Retail banking is not the only area that is changing. Financial advisors are being threatened by robo-advisors. Corporate treasury departments are seeing their own competition from startups, but all these areas were also featured at MWC with the big players stating that they are seeking partners.

Fintechs may be small, agile, and innovative, but they need to acquire customers quickly so they can scale. Often the lack of a trusted brand can prevent a good idea from growing – especially when services involve finance. It makes sense for traditional banks to seek out the best fintech ideas and to then introduce these services to their existing customers.

Banking analysts have often predicted a looming disaster for banks as the customer-centric fintechs pick off one service after another and reduce bank revenues, but the real picture is more complex. Fintechs need customers fast and banks have millions of customers. The real future for banking may be in creating a better customer experience through partnership with innovative services. What do you think? Leave a comment below, or get in touch on LinkedIn, and let me know.


Helen Murray
Article by: Helen Murray

News & Insights

Service Provider
Solution Designer
Technology Enabler
News
Webhelp acquires PitechPlus – a leading software solutions expert

The Webhelp Group announces the acquisition of PitechPlus, a Romanian company that designs, develops and deploys custom - made software solutions, particularly in the areas of sales digitalization and process automation. PitechPlus already supports major European companies in their digital strategy in several sectors including automotive, tourism & travel, public administration and online...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
Webhelp “Think Human”

Webhelp rings in its next phase of strategic development with new brand Paris-headquartered Webhelp, the European leader in customer experience and business solutions, today revealed its revamped brand platform, supported by an updated visual identity. The group’s new brand reunites the...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Blog
Safeguarding client loyalty and retention

  Everybody likes to be valued and appreciated and the success a company celebrates is also directly linked to its clients. In a B2B business model, clients are after all the reason we are in business. And when they feel valued, they not only become loyal but also use their experience to...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
[Fashion] Fifty Jeans – Launch your brand without cashflow problems!

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook