As more and more banks cooperate with service providers, their strategic importance is growing: This the result of the fourth relevant study (in German) titled “Outsourcing in the financial industry”, published by PwC (PricewaterhouseCoopers). The study highlights how FinTechs are expanding their modular offerings to help banks implement their own open banking strategies.
Strategic partnerships will not only be vital for banks to survive, but they are becoming must-haves for Financial institutions. This point was stressed by the CREALOGIX Board of Directors Vice President & Chief Strategy Officer, Dr. Richard Dratva, as part of a survey of banking experts conducted as part of the PwC study. The survey itself shows that the industry is on the right track in this respect. Almost three-quarters of the bank representatives surveyed (73%) hope that outsourcing will give them access to specialised resources that they themselves cannot provide. They are therefore willing to retain their customers utilising a broad range of products, and have long since abandoned the idea of being able to provide all services themselves.
Outsourcing: relationships at eye level
By collaborating with Fintechs in a structured and long-term manner, banks are opening up new technologies and innovative applications that would otherwise require them to dig deeper into their own pockets to develop. Interestingly, the proportion of banks and Fintechs that agree with the following statement stands at 85%: “In the next one to two years, strategic partnerships and cooperation with our service providers will grow in importance.”
Both sides are talking about “service relationships at eye level”. This marks a new quality of mutually beneficial exchange, which also includes the joint (further) development of services.
Banking-as-a-Service creates ecosystems
Outsourcing within the framework of strategic partnerships creates ecosystems that are open to the offers of third parties. Open banking platforms enable customers to obtain exactly the applications they need. They are connected and orchestrated as Banking-as-a-Service – independent of the provider – via APIs. In the PwC study, just under 80%of representatives of financial institutions stated that they wanted to obtain modular services from Fintechs, although slightly under half of the institutes felt that they already had the process and technical expertise to implement modular outsourcing themselves. The CREALOGIX Digital Banking Hub, which can be seamlessly integrated, provides a suitable basis for a robust, open and future-proof open banking architecture.
Further study results and an overview can be found here (in German).