Fintech is a blend of “financial” and “technology”. It refers to any app, software, or technology that allows people or businesses to digitally access, manage, or gain insights into their finances or make financial transactions
As the World keeps on changing and improving in never before imaginable ways, many traditional approaches of doing things also tend to become obsolete. One such area is the Banking Sector. Nowadays, if the Financial Service Providers do not collaborate with FinTech Companies, they are bound to face a downfall in their futures. Whether one wants to do instant money transfers to friends and family through their smartphones, opt for crowdfunding, invest in crypto currency, or trade in stocks on the go, FinTech is the answer to all. These and a whole plethora of other services are provided by FinTech Banking Partnerships.
Following is the list of the Top 5 FinTech Banking Partnerships in the present day market –
1. i2c + Amex (American Express) –
Founded in 2001 with its Headquarters in Redwood City, California, i2c is a plug and play platform that provides digital payment and banking technology. On the other hand, American Express, founded on March 18, 1850, and Headquartered in Buffalo, New York, is a globally integrated payments company that issues personal, small business and corporate credit cards.
On April 7, 2022, they announced an expanded global and multi-product agreement, leading to the availability of AmEx network to FinTechs. Starting with Keo American Express Card (Mexico), Bancrédito Black American Express Card® (Puerto Rico), etc.,the Covalto American Express® Credit Card from Credijusto (Mexico) is next in line.
2. Wise (used to be Transfer Wise) + N26–
Founded on March 31, 2010, Wise is an IT Service Management Company, Headquartered in London, UK. It is a non-bank payment provider, thanks to whom users have got a cheap and fast means of transferring money abroad. N26, a German Neo Bank Headquartered in Berlin, was founded in February 2013. It provides globally accepted debit accounts and MasterCard, among other basic banking services.
In February, 2013, they teamed up and the transfer feature of Wise was directly integrated into the N26 App. Customers can now choose from as many as 38 currencies to make global transfers at the real exchange rate prevailing in the market. With a low fee and full disclosure of all charges to be incurred before making the transfer, N26 has made life easy for all by wisely teaming up with Wise.
3. Subaio + ABN AMRO –
Founded at a hackathon in 2016, Subaio is a Software Company in Aalborg, Denmark. It provides its users with the simple yet essential service of keeping track of subscriptions and easy cancellation of the useless ones. ABN AMRO is the third largest Dutch Bank, founded on September 21, 1991, headquartered in Amsterdam, Netherlands.
In September 2020, ABN AMRO became the 7th bank to come in partnership with Subaio, and provide this Subscription Management feature to its users. The Grip App has proven to be a convenient way to directly cancel subscriptions, thus helping users to cut back on wasteful subscription costs.
4. FiniCity + MasterCard –
FiniCity was founded in 1999, in Salt Lake City, Utah. It is a real time financial data aggregation and insight platform. It helps users make well-informed financial decisions, based on high quality data. MasterCard, on the other hand, is the second largest Payment Processing Corporation in the World. It was founded on November 3, 1966, and is based in Purchase, New York.
On November 19, 2020, MasterCard completed its acquisition of Finicity, further strengthening its Open Banking by providing its users with additional control over their financial data.
5. IntraFi + CitiGroup –
With the arrival of Y2k, IntraFi, among others, recognized the need of a network that would connect all the banks across the country. Over the years, this technological leap has helped banks attract billions of dollars in deposits. Over 3000 financial institutions are using IntraFi, making it the largest banking network at present. Similarly, the highly adept CityGroup started its 200 year long journey on June 16, 1812, as City Bank of New York. To this day, they “responsibly provide financial services that enable growth and economic progress”.
On March 14, 2022, these giants partnered to provide Yankee Sweep, a Deposit Solution that helps clients easily manage their liquidity. The platform has many enhancements planned throughout 2022.
As these partnerships grow in number, so does the Customer Satisfaction Index (CSI). Services like Open Banking, Decentralized Finance, Banking as a Service (BaaS) Platforms, etc., provide an unparalleled experience to Banking Service Users. However, these Financial Institutions also need to ensure the enforcement of Cyber security, while also being Sustainable and Socially Responsible. Nothing will impact the CSI more than if the highly valuable financial data of customers gets leaked to unwanted parties or if they are unable to shift to greener products and services for the Sustainability conscious customer of the modern society.