Financial institutions need to strengthen cooperation with financial technology start-up companies

nnnThe financial research department of IDC pointed out that as financial technology has become a major technical trend, traditional financial institutions need to cooperate more with financial technology start-up companies. Both sides should give full play to their strengths in cooperation to achieve a breakthrough in financial technology, while strengthening the link between financial institutions and customers. But this cooperation is more time-consuming, need to wait patiently.n
nnTranslated by: Inan
nA multinational research company said that financial institutions should work with financial technology start-up companies in three areas to complement each other’s knowledge.n
nIDC Financial Insights is IDC’s financial research department, its assistant vice president Michael Araneta said that payment, remittance and customer analysis is the banking and financial technology start-up companies can cooperate in three areas. Banks have customer skills and data, and start-up companies are energized to provide innovative services.n
nBehavior analysis, block chain, cloud adoption and consumer mobile payment are the top technical trends that affect financial institutions in 2017.n
nAraneta said in an Asian forum: “In 2017, banks have begun to develop financial technology plans or positioning themselves as financial technology start-up companies.”n
nAs the service can be expanded, there will be opportunities for platform building and creating sandboxes. At the same time, the development of application programming interface standards will be the basis for innovation and communication between banks and start-up companies.n
nAraneta said:n
nn”This is a great opportunity for banks to make this contribution to this cross-industry partnership, such as working with a retailer or airline.”n
nnProfits through the data also provide banks with a chance to re-use their huge data to analyze consumer spending and buying behavior.n
nAraneta cites the statistics of 33 successful financial and financial cooperation cases tracked by IDC Financial Insights. He said that it would take at least a year when the cooperation between financial technology and banks changed from idea to reality. This time is more long for start-up companies, mainly regulatory and compliance issues more time-consuming process.n
nHe said:n
nn”The majority of the 33 financial and technology startups (61%) will move from concept to concept validation within six months, and after six months, 75% of them will transition from concept validation to deployment.”n
nnFinancial technology is growing fast, and Asian regulators have positioned themselves as innovation centers.n
nAraneta said:n
nn”Regulators are also competing to become the most open and innovative organization, and it is expected that 2017 will be a year for many regulators to relax their policies.”n
nnHe said banks are still focused on non-digital technologies and initiatives. Many of the funds are used in traditional large data and analysis or corporate transformation around security and fraud management.n
nAraneta pointed out that banks need to find ways to provide “no resistance to financial services”.n
nHe said:n
nn”By 2018, we believe there will be 18 channels of communication between banks and customers, and customers will have more channels to interact with financial institutions, and the frequency, duration and interaction of this interaction will also work with cross-industry Expand and improve. “n

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