Digitalisation is thrusting all areas of the transaction banking industry into uncharted territory and to make the most of the arising opportunities, banks must strike a delicate balance between competition and collaboration.
As businesses adapt to an increasingly digital landscape, their needs are changing too – and banks must adapt their products and services accordingly. Evolving technology is paving the way for advanced technological solutions, while changing regulations – such as PSD2 – are shaping their applications.
Banks and fintechs are hard at work to develop the next market-leading solution in their field. As they do so, they must bear in mind that creating the best digital product is only half the battle. Crucially, the product must be widely available and interoperable with the systems of other banks. It should come as little surprise, therefore, that multiple banks are coming together and developing solutions in tandem in order to hasten the digital revolution in transaction banking.
Of course, amid the understandable hype surrounding inter-bank collaboration, banks are still competing for the same business and will need to find a way to differentiate themselves and their offerings. Fintechs could have an important role to play in this respect – with banks enlisting their support to build the best digital channel for using services developed by the industry as a whole. A solution developed with the expertise of multiple banks, focused on the specific needs of clients and channelled through the technological expertise of a fintech, will be well positioned to succeed in today’s marketplace of competition and co-operation.