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3 Types of Fintech/Bank Partnership Models The benefits of fintech partnerships [for banking institutions]
When clients have the opportunity for more services, faster response times, and a simple-to-use digital platform, they will leave you.
But they don’t want to.
They’ve spent, nay they’ve invested in this relationship just like you have to establish and build trust and loyalty; the pinnings of a strong relationship. Fintech partnerships help your organization retain customers and continue to grow your bond of trust. There are 3 models of partnerships that you can consider when looking at fintech partners.
- Referral Partnership – With this model-type your institution earns commission for referring customers to your fintech partner. You still vet your fintech partnership before offering any services. But if your institution does not have the resources to invest in managing a new offering this model may be what you’re looking for.
- Assisted Private-Label Partnerships – A very common partnership where both your institution and your fintech partner bear responsibility and control over the customer experience. At the end of the day your institution gets all of the benefits of the fintech technology without having to do all of the work.
- Private-Label Partnerships – Your institution purchases the fintech solution, customizes it, and sells it to your customers. Your customers will most probably never see the fintech company’s name anywhere on the product. You can bring a bank-branded product online keeping a seamless experience for your customers. There is, however more internal resources required from a sales, marketing, and support standpoint.
You have to ask yourself, which model is right for your institution? Assess your current resources; staff, collateral, and time and determine which model best suits you and your institution.
One thing is for certain; our future is one that will be constantly evolving and providing customers with the services they desire will be more present than ever before.
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