Fintechs, banks work to find common ground on managing risk
Bankers are, by nature, risk averse.
“The whole culture of the industry, by definition, is risk management and failure averse,” said Norm DeLuca, managing director and GM of banking solutions at Bottomline, a financial services provider for small- to medium-sized businesses. “Technology companies and technology innovation are neither risk averse nor intolerant of failure.”
For community banks, the fate of fintech innovation and digital service demand has been a slow-burn inevitability for years. The pandemic, however, catalyzed the spark that jump-started banks that were dragging their feet.
According to the Banking Experience Survey, an annual survey of consumers’ and business leaders’ experience conducted by Citizens Financial Group, Inc., half of consumers and more than three of every four businesses said the COVID-19 pandemic has changed the way they interact with their banks. Of these respondents, 66 percent of consumers and 73 percent of businesses expect these changes to be permanent.