Banks Need to Take the Lead to Make Fintech Mainstream
I [Bram Berkowitz] spent a few weeks last month examining the love triangle between community banks, fintechs and the companies that provide banks with the core processors they need to make daily loan, deposit and credit transactions.
The relationship between these three parties is, in Facebook terms, “complicated.”
The fintechs looking to deploy their technology through banks are offering modern, real-time technology, often with artificial intelligence baked into it. Yet banks are still using core processing systems developed in the 1970s or 1980s, making integration of new technology difficult.
While the banks would love to offer the most innovative technology to their customers, any technology they want to integrate into their core requires approval from the core processing company.