3 steps to fostering successful fintech partnerships

New York City — Lenders are increasingly partnering with fintechs to update legacy systems, but successful partnerships require strong collaboration at all levels of the organization.

“For more banks to do this successfully, they need to understand the technology. They also need to understand the nature of startups and their businesses.” Peermont Banksaid Rodrigo Suarez, head of innovation at the company, on Wednesday. finobatefoll in New York City.

“It’s not natural for most bankers to do that, nor is it natural for most tech people to understand how banks think,” said Suarez. “Having people on both sides of the equation who can bridge that gap and understand both sides of the equation is very important.”

Suarez outlined three steps to foster successful fintech partnerships.

• two-way collaboration

Successful fintech partnerships are characterized by strong cooperation from both banks and their fintech providers, Suarez said.

“We need strong engagement [and support] From everyone at all levels, from senior leaders to the people who actually operate these partnerships,” he said. “Without that very strong collaboration, no partnership really works between banks and fintechs.”

• Understand regulatory requirements

Suarez said ensuring that both parties understand the regulatory obligations of both financial institutions and technology providers is paramount to long-term success.

“Often it is [means] Banks work with fintechs to ensure that certain things are done right and done the right way,” he said, adding that fintechs “genuinely understand” banks’ regulatory obligations. pointed out to be important.

• Transparency and culture are key

Suarez said transparency between banks and fintech providers is essential to moving partnerships forward. Without transparency, it would be difficult for both teams to work towards the same common objective, he added.

“I think it’s a lesson in the broader sense for me. [in the last three years] The importance of having the right culture as a bank to be able to do this kind of thing well,” Suarez said. “I think sometimes that’s not emphasized enough. [culture] One can go a long way.

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