As the need to innovate becomes more pressing, banks have become increasingly collaborative. This new era of cooperation sees lenders striking up new partnerships with the full range of market participants including clients, fintechs and employees – to pursue their digitisation and innovation agendas.
Danielle Myles, investment banking editor of The Banker, speaks with Eli Keren, Founder and CEO of Betalo to hear the fintech view on collaborating with banks.
The Banker Viewpoint Series is sponsored by Nordea but independently edited.
Partnering with fintech companies has been a more controversial issue for some banks. Once viewed as potential rivals, fintechs are now numbered among the banking industry’s most valuable partners.
In transaction banking, regulators have pushed a competition agenda, with the revised Payment Services Directive (PSD2) promoting the concept of open banking, whereby banks must give third parties access to client data (with the consent of account holders).
Cooperation, rather than competition, is now the byword when it comes to fintechs and banks. Nordea’s Open Banking Developer Portal, an API (application programming interface) sandbox, for example, has gained much traction in its first year, with more than 2000 developers now using it.
Eli Keren says PSD2 has been a “big game changer” for the industry and will open many new opportunities for payments providers – both banks and start-up fintechs. “For us, PSD2 gives the opportunity to add value and add services to our customers. We know that our users are looking for a full picture of their financial life and that is something that we can offer them now through the PSD2 initiative,” he says.
Getting the company’s products out to the market is another matter, and Keren says partnerships have been at the core of the company “since day one”. Betalo has worked with Nordea for a year and recently started a new communications project with the lender’s customers.
“With 11 million customers, Nordea is the largest bank in the Nordics. We tried a number of different communication channels so far and Nordea has proven to be really successful and we hope to do more in the future,” explains Keren. Nordea has provided the company with the scale to reach different geographies.
The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.
The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.
Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.
The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.