FinTech_ Issue 29

Conclusion: The main milestone of today financial institutions management in this economic era is the merge of technology with retail banking and investment with the aim of increasing customers’ satisfaction. Despite the benefits of the partnership between traditional banks and Fintech Firms, several factors are posing challenges. Management and culture differences, regulatory uncertainty and legacy technology limitations, are identified as being major challenges to working together. Capitalizing on the benefits and overcoming the existence challenges will have a positive impact on the financial services area and will widen the customers’ database. - Reducing and saving Cost: such collaboration allow high volume of transactions with a low operating cost within a short duration of time. Low operational cost helps banks to offer a variety of services with a discounted rate to attract new customers and retain existing customers. - Rate of Return: such collaboration can guarantee high rate of return in the long run considering high volume of transactions and low operating cost. - Outsourced R&D Solutions: collaborating with Fintechs will allow banks to outsource part of their R&D and bring solutions to market quickly. - Access to customer database for Fintech: Fintech companies also benefit from these partnerships, as they develop new theories and models, in order to test them, they need access to large customer base and data sets that banks already have.