Banks have not been blind to the rise of financial technology (“FinTech”) start-ups, nor has their approach to the new upstarts been completely characterised by competition. On the contrary, many banks have been encouraging the industry’s growth – setting up “FinTech labs” to nurture start-ups’ expansion for mutual gain. In a new report for Euromoney, Christian Hoppe, head of credit solutions at Commerzbank and the founding director of the bank’s own incubator lab, main incubator, offers his insights into some of the reasons behind this trend.
In the article, “Fintech labs could be at saturation point” Hoppe suggests that by collaborating with FinTechs – as does Commerzbank’s main incubator – banks can improve their own technological solutions. “Banks are open to third-party solutions,” he explains. “This allows them not only to offer new products, but also to build up important technological knowhow.” In turn, “tech-driven start-ups, with their new technologies, can hook up their solutions to interfaces provided by banks.”
The full article can be read online here.