THELOGICALINDIAN - A contempo address by CR2 on Africas fintech transformation suggests acceptable banking institutions can still be a allotment of the fintech banking anarchy if they advantage one of their best cogent assets applicant trust
Partnerships Between Banks and Fintechs
The report urges banking institutions that ambition to beforehand their beforehand to success in the fintech amplitude to coin partnerships with fintech startups and technology companies. Having such partnerships, as able-bodied as their longstanding applicant networks and added authentic authoritative environment, agency banking institutions can still abound their allotment of Africa’s agenda market.
To allegorize the accent of the accord amid banks and fintech, the CR2 address makes advertence to the story of how one Nigerian bank, GTB, absent audience afterwards its adaptable cyberbanking belvedere went offline. The address again contrasts GTB’s misfortunes with the acceleration of the VC-backed fintech startup Kudabank, which saw its chump abject acceleration from 300,000 to 1.4 actor in beneath than three years.
However, the address argues that acceptable banking institutions can still attempt with VC-backed fintech startups if they adjudge to advantage their best cogent asset: applicant trust. This perceived applicant assurance advantage is backed up by a fintech abstraction conducted in Nigeria by the consulting close McKinsey Consulting.
Trust Remains Key
According to the allegation of the study, about 67% of banked barter in Nigeria had added assurance in their coffer than in fintechs. Although this abstraction assured that Nigerian banks had occasionally fabricated some missteps, it still begin that there is still some averseness by consumers to about-face to fintech products. Therefore, while admission and accessibility are important considerations for customers, assurance is still analytical and this gives banking institutions the edge.
In conclusion, the CR2 address urges banks to appropriate the befalling to abound their allotment of Africa’s agenda accounts market. The address says:
“Longstanding cyberbanking institutions charge acknowledge with addition casework congenital through accord with enabling agenda cyberbanking belvedere partners. Those banks that brace their chump assurance advantage to atypical addition on the artefact and belvedere ancillary angle to excel in Africa’s 21st-century fintech landscape.”
Who do you assurance more, acceptable banks or fintech startups? Tell us what you anticipate in the comments area below.
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