While finance technology firms or fintechs are succeeding in certain segments of treasury, banks still maintain their distinct advantage of being able to provide clients with a comprehensive set of financial services through integrated delivery channels, according to a new report from Celent.
“Fintechs are unbundling traditional corporate banking services, leveraging emerging technologies to offer new, innovative treasury solutions,” says report author Patricia Hines, senior analyst in Celent’s Corporate Banking practice.
“But recognizing that universal banks have unrivaled experience meeting the complex needs of corporate customers, many fintech firms are collaborating with banks through a number of different innovation models.”
While fintech firms have some structural advantages that allow them to be nimble, corporate treasurers need to ensure that their fintech providers meet trust, security, compliance, and risk requirements. As they balance risks and benefits of non-bank financial services, treasury should do the following:
1. Thoroughly understand capabilities.
2. Look beyond the hype.
3. Challenge their partners.