Banks are becoming increasingly prepared to work closely with IT startups to help them remain competitive, as the threat from technology companies and financial startups looms.
The latest research from banking association Emfa and Infosys Finacle found that 77% of 158 global banks thought of technology companies, startups, retailers and telecom companies as significant threats.
The research also found that companies from outside the financial services are increasingly encroaching into the business of banks.
The German business division of mobile operator Telefonica is using technology from a challenger bank to launch a mobile-based bank account.
Currently, technology companies such as Apple and Samsung are using the popularity of their smartphones to offer payment services.
HSBC’s head of retail banking and wealth management, John Flint, says mutual respect now exists between financial technology companies and banks, with more collaboration expected.CEO at Emfa, Vincent Bastid, said the study confirms banks have turned to startups to drive their own digital transformations.
He said: “However, banks are being held back by old legacy systems and are still divided on where and how much to invest.”
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