In the financial world, there is a growing trend towards collaboration between banks and FinTechs. This trend is driven by the recognition that banks need FinTechs, and vice versa. However, there are still many barriers to entry that are hindering innovation on the banking side and causing many startups and FinTechs to fail.
Think Tanks have been established to address this industry-wide issue, and the cooperation between banks and FinTechs that we are seeing shows that everyone wants to solve this problem. Moreover, banks are now also cooperating with each other to tackle this issue together.
Regulated Entities: Managing Third-Party Relationships
Banks are regulated entities and managing third-party relationships can be complicated. However, our platform is facilitating this process and making it smoother. The time it takes to bring NDAs and POCs down to 24 hours has been reduced for tier 1 banks using our platform.
Impact of the Changing Economic Environment
With the UK government investing heavily in startups to support the economy, it is important to prevent these startups from failing due to a long and arduous onboarding process. By making the process visible to startups, we can help them succeed and benefit not only the industry but also the economy as a whole.
In addition, the current cost of living crisis will increase the need for FinTech solutions for banks, as customers will expect banks to help them manage their finances. Solutions like ours will be in high demand to facilitate these solutions and make them enterprise ready.
The Benefits of the ERQs
The ERQs (Enterprise Readiness Questions) are a key part of this collaboration between banks and FinTechs. TechPassport has facilited a group of 15 global banks to come together and create a list of the ‘must-haves’ for a FinTech / startup to be able to do business with a large enterprise. This also shows the startup how enterprise ready they are by giving them a rating.
The benefits of the ERQs are numerous:
Speed up FinTech onboarding – The ERQs will enable banks and financial institutions to access the latest innovations in the industry faster, driving innovation and ensuring that FinTechs can bring their ideas to market more quickly.
Save time and money – The standardized nature of the ERQs will reduce the time and effort required by FinTechs to prepare for onboarding, while banks and financial institutions will be able to assess the readiness of a FinTech for integration more quickly.
Enable Banks to deliver on the UK government-backed FinTech Pledge – The ERQs will allow banks to deliver on the UK government-backed FinTech Pledge, which aims to support the growth of the FinTech industry in the UK.
The cooperation between banks and FinTechs is changing the financial landscape and making the process of FinTech onboarding faster, smoother, and cheaper. The ERQs are a key part of this collaboration and bring numerous benefits to both banks and FinTechs. This new system will support the growth of the FinTech industry and benefit the economy as a whole.