Collaboration is Key : Positive results come when FinTechs and financial institutions work together
In a new op-ed titled “Fintechs And Financial Institutions: The Case For Collaboration”, FINCA Impact Finance (FIF) Vice President & COO Caren Robb writes about the importance of collaboration by financial services providers and fintechs, especially in emerging markets.
Writing in ValueWalk, Robb points out how tech institutions can reach their full potential through financial institutions. A banking partner provide stability for a fintech company and allows them to innovate freely under the regulatory umbrella.
“Larger financial institutions also have advantages in distribution, customer experience and marketing that fintech firms struggle to replicate. Banks know more about their customers because they have personal relationships with them. This way of delivering services, a “touch tech” delivery model that combines digital efficiency with personal trust, makes it possible to provide larger loan sizes and more personalized services.”
Finca Impact Finance has successfully collaborated with a number of fintechs. Writes Robb:
“FINCA Microfinance Bank Limited (our subsidiary in Pakistan) partnered with a Pakistan-based tech firm to launch SimSim. SimSim is a mobile wallet that makes it possible to do banking without incurring transaction fees and with no need to visit brick-and-mortar branches. Finja, our partner, contributed the technology and we provided the banking license and necessary infrastructure”.
Read the full op-ed here: