In the last year traditional banks have made a strategic u-turn, moving away from opposing fintechs towards learning to cooperate and build strong relationships with them. If banks love fintechs, then perhaps corporate treasurers will love banks?
A two-way or threesome relationship
Corporate treasurers have two ways to interact with fintechs, renders a report by Deutsche Bank and The Economist. Either, directly by replace existing products or services with capabilities developed by fintechs. Or, enter a threesome by joining the relationship their bank holds with fintechs.
Gaining ground and consumer trust
Fintech companies are growing up, growing strong and gaining maturity. The main fintech firms in both payments and supply-chain finance are now large-scale companies. The technology driven financial companies are gaining consumer trust. Illustrated in the high willingness for corporate treasurers to engage with banks that partner with fintechs, the report argues. Namely, three out of four corporate treasurers would consider using fintechs that has partnered with a bank, highlights the report.
Payments is the most common point of contact
The main contact between corporate treasurers and fintechs have been within payments. More specifically, six out of ten treasurers have used fintech services in payments, followed by three out of ten in supply chain finance.
Deutsche Bank is an example that demonstrate how to create new corporate treasury solutions and drive change by leveraging fintech partnerships. In one project, such a partnership was established to enhance payment products with real-time risk surveillance capabilities, according to iTreasurer.