As we recently reported, fintech firms can be both friend and foe to traditional financial services organizations. But fintech firms may start to see banks as funding friends — especially since more banks have started to funnel money to fintech as they look for potential strategic advantages. This week’s FIN List trend roundup also has the latest on tech in the boardroom, mobile adoption, IoT and branch transformation.
- Banks increase their role in fintech funding. Just two years ago, the fintech dialogue was all about bank replacements. Now, as VC funding dips, the fintech market is becoming interested in how it can partner with banks. Likewise, the banks themselves are allocating investments with the intent of partnering and building new products with these new entrants.
- Bridging the tech gap in the boardroom. Beyond the need to support technological innovation at the management and staff levels, banks and credit unions are facing the need to increase their technology expertise at the board level as well. Unfortunately, less than 6% of boardroom members and 3% of CEOs at the world’s largest banks have professional technology experience, according a new Accenture report.
- Mobile banking hits its stride. Here’s a bit of good news for banks: 63% of consumers have used their phones to perform a banking task and 78% of consumers using mobile banking are satisfied with their experience. Plus, 61% of consumers have downloaded their bank’s app!
- IoT and a banking revolution. If there was any doubt that IoT was booming, that’s about to change. Financial institutions, and in particular retail banks, are investing increasing amounts in infrastructure that will support this new network of connected devices — set to grow to $6.4 billion by the end of this year.
- Credit union branches are here to stay. Though the net number of credit union branches has been falling over the past few years, no industry insiders or experts expect to see online-only or “direct” credit unions popping up anytime soon. Instead, credit unions must take a more strategic approach to their branch networks, leading with using data and focusing on a branded experience.
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