Fintechs (a term that comes from the union of the words in English finance and technology) have gained increasing popularity in the business environment, especially in recent times.
And statistics that account for the sector's growth, which include firms that seek to simplify and automate financial processes, demonstrate this. According to a study by the Startup Ecosystem platform, in 2021 companies of this type in Spain received 481 million dollars.
But when you think about the fintech boom, it’s hard not to think about what happened in the midst of this transformation with traditional banking. User demands have evolved, and traditional financial institutions have had to reinvent themselves to face the challenge. Today, both structures coexist in harmony with the aim of bringing customers the best of both worlds.
The relationship between both business models has not always been the same, from the 1970s when the first fintech was invented till today. Initially, banks saw these innovative startups as a threat.
Fintechs had another major advantage: they were readily available 24/7 through a computer or a mobile application, without the need to go to a branch in person, says Expensya's CEO.
Given this reality, collaboration has become less a possibility, but more a necessity. So much that, according to a recent PwC study, 82% of traditional financial institutions intend to strengthen their partnerships with this type of businesses in the next five years.
Banks may collaborate with fintechs to create an innovative digital experience that matches customers' demands. Startups, for their part, can benefit from their large customer base and their infrastructure and investment capacity.
Banks and fintechs thus form a powerful duo capable of responding to one of the most important needs of users in the digital age: flexibility and ease of operation.