Project Description

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From competitors to connectors

New ways of thinking are vital to innovation. A big shift has occurred in how banks and fintechs think about each other, which is yielding new and better ways of doing things for customers.

Cooperation between banks and fintechs brings together complementary skill sets so that the right partnerships can enhance the value that each has to offer. For banks, fintechs are connectors to the latest technologies and nimble execution that can heighten responsiveness to customer demands and speed to market. For fintechs, banks bring deep customer relationships, trust, security and compliance along with scale efficiency and banking infrastructure connectivity. Delivering services through banks can provide fintechs with a critical growth platform.

Practical-minded advances

The aim of bank-fintech collaboration is to solve practical problems where capabilities have gaps or there is an opportunity to improve services rapidly. Some examples include:

  • Simplified payments and invoicing. Enable a more convenient and intuitive method of originating and accepting online payments.
  • Integrated receivables. Improve automated reconcilement rates for all receivables by taking advantage of the latest artificial intelligence and technologies for robotic processing automation.
  • Invoice and payables automation. Quickly streamline and consolidate payment and invoice processing with improved tools that integrate directly with various ERP platforms.
  • ERP integration. Streamline payment origination and reconcilement activities by integrating directly with your ERP platform.

Building on precedent

Bank-fintech partnership is not a radical notion. A collaborative approach builds on the longstanding tradition of banks sourcing innovation from third-party financial technology vendors that specialize in the banking space, including payment services. The new class of fintechs are the latest to join the supply chain for delivering banking services.

As a result, fintech capabilities become accessible through a trusted bank relationship. Bank customers can access new technologies and enhanced services more quickly and easily as part of a complete package based on a stringent due diligence process that vets fintechs to select best-in-class providers. This can reduce the need for businesses to establish one-off relationships with fintechs and undergo a prolonged due diligence process.

Interconnecting customer communities

As banks and fintechs cooperate, they connect their communities of consumers and businesses into a larger network. The more this happens, the greater the network effect, in which interconnectivity helps to integrate the banking system and broader commercial ecosystem. Ultimately, this can make it easier for everyone to do business.

For more information, contact your Wells Fargo treasury management representative or fill out the Contact Us form on this site.