(22 May 2023 – Global) Nine out of ten major global financial institutions are actively pursuing new fintech partnerships to improve their offerings according to new Finastra research.
Finastra, a leading global provider of open financial platforms, software applications and marketplaces, released the new research that examines what financial institutions (FIs) think about fintech investment, integration, and environmental, social and governance (ESG). The research reveals that when it comes to lending, FIs overwhelmingly view fintech partnerships as a vehicle to improve their offering. The major pain point they currently face stems from the lack of streamlined digital workflows.
Produced in collaboration with East & Partners, FI leaders seek fintech partners who can help progress innovation and provide clear return on investment. The research was conducted among 783 interviewees at 260 financial institutions in the United Kingdom (UK), Europe, the Middle East, Asia Pacific, and the Americas, as well as 393 interviews with North American community banks and financial institutions (NACM).
“In an environment characterized by uncertainty, high inflation, fluctuating interest rates and recessionary risks, banks are under an increasing amount of pressure to drive operational costs down while continuing to improve how they serve their customers” said Finastra Executive Vice President of Lending, Isabel Fernandez.
“The survey demonstrated the recognition from financial institutions that they cannot navigate these waters alone. They are instead opting to partner with fintechs, with a preference for plugging into a platform of integrated fintech solutions, to help them to adapt quickly while reducing costs.”