Collaboration appears to be the key to survival for both fintechs and the established banks.
Santander is set to work with BiBox, a UK startup targeting the reinvention of collaboration banking, to promote and bring on board offerings from more agile fintech companies.
BiBox aims to accelerate the process of incorporating new technologies while out pacing previous methods of doing so, while also bringing these new capabilities to all aspects of the organisation.
The global banks are in need of the cutting edge technology to compete in many areas with the fintech companies that are rapidly emerging. Major banks have reached a point at which new technologies and collaborations must be embraced, or else face decline.
It is not simply the case that the big banks are responding to pressure from the market, they are also responding to pressure from regulators such as the Financial Conduct Authority, and the Competition and Market Authority (CMA).
New guidelines are prompting the likes of Santander to move on from legacy tech, and bring more up to date options to customers.
“The financial industry is entering an era where collaboration will be one of the gears for exponential growth. Accelerating integration and distributing cutting edge technologies that better serve the end client is now fundamental. One way to achieve this model is via an orchestrator, such as BiBox, which connects bans and fintech partners,” said Christophe Pechoux, global head, innovation, Santander.
Fintechs have even gained support from the regulators, with the Financial Conduct Authority (FCA) standing in support of them with a sandbox for the furtherance of innovation.
The four leading UK banks, Barclays, Lloyds, RBS and HSBC have been prompted to improve processes such as the transitioning of current accounts; this improvement is being pushed by the CMA.
Santander are looking to technologies that are currently right at the cutting edge of tech trends, including blockchain, artificial intelligence (AI), and client lifedtyle management. All features that could massively benefit customer experience.