Late 2019 the Raconteur wrote about the challenges of banks taking advantage of FinTechs to transform their core banking systems.
The article dwells on a number of points that resonate with us at Adoptech:
– Heavily regulated firms are risk-averse, quoting Mitesh Soni of Finastra: “nobody ever got fired for choosing IBM”.
– Small firms create continuity risk says Gareth Malna of Burges Salmon “Even FinTechs that have great products can be bad businesses and unknown FinTechs provide both reputation and business-continuity risks”.
– FinTechs are not bank enterprise-ready “FinTechs need to embrace compliance with relish” says Veronique Merriam Barbosa of Flux.
I think we all recognise that the current crisis will accelerate the need for the adoption of technology to drive out costs, enhance customer experience and sustain operational resilience. We probably also agree that FinTechs represent much of the answer to the Bank’s problems. However the unhealthy juxtaposition between large firms and small FinTech remains a barrier to adoption.
There is another way. Firstly our Software Assurance service insulates the Bank from the risks associated with the FinTech by monitoring the health of the software vendor and ensuring continuity of the service, no matter what happens. Secondly we provide a Vendor Toolkit that enables Fintechs to comply with bank regulatory requirements and be enterprise-ready.
We are all going to have to reimagine our approach to innovation. Let us help you think differently.
Predict – Prevent – Protect