Abayomimutiu @gmail.com; Bsc, Management science, Agricprenreur and consultancy, ,HND Estate management 08038462499,08163907072-whatsapp
part 10 CHARTING A PATH TO INCREASING TRANSACTION BANKING VALUE BY 50 PERCENT!!! Fintech partnerships: 3 to 5 percent impact on operating profit While banks have long faced the choice of build, buy, or partner, we increasingly believe that the future is tilted toward partnerships, especially with fintech innovators. Fintechs offer a range of innovative services that bank customers want. Partnering with them considerably reduces the time to market compared with relatively slow internal bank build efforts to develop something similar. These partnerships also make continued investment in critical client propositions more likely: Fintech business models are typically predicated on continuous, iterative innovation to maintain and deepen product–market fit, whereas many banks will reduce investment after the initial build. Interestingly, some of the largest global banks, such as HSBC and Citi, which in theory are well positioned to build purely proprietary solutions, are some of the most prolific partners and have internalized this logic. Regional banks, which face greater investment constraints, may want to follow their example. To do so, these banks would need to develop their “partnership engine,” systematically scanning for opportunities and deriving value from the ones they pursue. The most successful partnerships include the following: a strong alignment of interests, often with gain-share type agreements clear synergies on both sides, beyond simply adding more distribution and sales a go-to-market approach that leverages the speed of fintech processes and the regulatory experience of the bank When they are well designed, we see such partnerships regularly driving 3 to 5 percent upside in profitability, with improved offerings in the chosen area leading to higher volumes and increased fees. Front-office excellence: 10 to 20 percent impact on operating profit The next lever, a structured commercial approach (“front office excellence”) is typically the foundational element in driving growth in transaction banking and can yield upside of 10 to 20 percent over the baseline. #boe #boc #boe. #cbn #banks. #boa #Africasglobalbank. #worldbankgroup