When the story of the coronavirus is written, when it comes to financial services, the key chapters will focus on the pace at which innovation accelerated — and where a range of players came together to create ecosystems, rather than to simply compete in zero-sum, winner-take-all bids for consumers.
Those ecosystems will leverage the trust that consumers have placed in traditional financial industry players and tech companies of all sizes – including Big Tech, of course.
Where once the marquee names in tech (and no shortage of FinTechs) jockeyed for primary banking services relationships, an increasing number of partnerships are now taking shape.
These collaborations leverage the ease of use demanded (and, in large part, perfected by) app- and platform-driven firms and banks that have the necessary scale and breadth as consumers navigate a rocky economic landscape.
The writing has been on the wall: PYMNTS research has found that though most people are satisfied with their in-place relationships with banks, only about 40 percent of people would be “extremely” or “very” likely to bring their banking relationships to Big Tech or FinTechs.