Banks and FinTech Companies; Integration and Cooperation, Not Competition
Source: The Jordan Times
Today, we live in a world of rapid technological development, thanks to decades of investment in the IT sectors, especially in electronic communications networks worldwide. It is, therefore, self-evident that this sector controls the details of our daily lives. We are not just talking about the local or regional market but the entire global market. In this age of speed, consumers now expect services, all services, to be readily available. This applies directly to the financial services and transactions provided by various financial and banking institutions to their clients worldwide. Hence, the importance of cooperation and coordination between all components of the financial and IT sectors became evident to provide modern platforms, channels, products and banking tools for consumers and to governments and states alike.
It makes sense for FinTech companies to provide technology and technical expertise and for banks and financial institutions to provide financial and banking expertise and funds to the different sectors of economy.
In today's world, financial institutions need not be bound by physical infrastructure and related public expenditures. For example, companies can take advantage of the burst status of available data, and benefit from advances in computing power, via cloud computing, analytical tools and modern machine learning tools, to understand that data. We note that the global banking industry is adapting to this world, and at the same time conventional banking models face significant challenges. Here lies the importance of speed in adaptation and change.