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Fintechs: a partner, not a predator

Technology is one of the key drivers impacting large financial institutions today. The reality is that instead of being threatened by emerging fintechs, firms have an opportunity to leverage fintechs to increase their existing technology capabilities to ensure the service provided to their clients remains relevant. By partnering with the right technology service providers, opportunities for both new business and expanded client offerings, will prepare companies for the future of investing.

Developing technology in-house has become a costly process for larger institutions and balancing the costs with the rewards is a difficult thing to get right. Fintechs are certainly bringing some transformative solutions to bear on many different areas of the financial services value chain, but they are usually focused on win-win situations: where there are legacy systems and processes that encumber transactions, the fintechs can provide the innovation to streamline the way that the business is conducted.

For a variety of reasons, financial services firms may find themselves constrained from being able to focus their energies on innovation, and build (or improve) their own capabilities in various areas. This is the opening that fintechs have used, to build and offer solutions to client needs or “pain points.” Through collaborating with fintechs, financial services firms can quickly close the gaps in their offering and solve their customers’ pain points, without having to develop the solution themselves.

Fintechs have the benefit and advantage of their smaller size and they move fast. They have the expertise to stay on top of emerging technology and develop offerings which larger companies can leverage. Collaboration to create effective partnerships with clients will change the way innovative products and services are offered in the financial services industry.

The result of partnering with the right technology provider, adapting to the changing financial landscape has become crucial in retaining and bringing on new clients and providing a better service. Ensuring that firms are investing in new technologies which enable their teams to have the tools for success, will define innovative business models and services.

Cashwerkz is a case in point. Cashwerkz has developed a trusted, reliable and secure online platform for cash investing, helping investors by giving them real time visibility and transparency of which cash investments are available in the market and at what rates. This technology enhances rather than disrupts current business models when it comes to managing cash allocations, allowing clients to instruct on term deposits investments much more efficiently than ever before, streamlining the entire process.

Partnering with a company like Cashwerkz allows firms to benefit from and advance their cash management technology, without the risk and delay of a build it yourself approach.

One of the benefits from using the Cashwerkz platform, allows investors to demonstrate easily that their clients’ cash holdings are being invested in their best interest, and in a transparent and efficient way.

At all levels, the platform has been designed to serve the client better, with the providers of financial services, and the investors’, also sharing in the benefit. The future viability of both groups depends on providing a better service to clients, and technology is at the very heart of this: both groups need technology to help them, but in many cases, they are constrained from committing the time and the investment to develop market leading technology. This is the gap that fintechs can fill, to the benefit of every participant in the service value chain.

To find out more about Cashwerkz, click here.



 

Fintechs: a partner, not a predator
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