There is a massive innovation happening in fintech right now. What’s intriguing is that banks are not leading this trend. While they remain strapped from the financial crisis with even tougher regulations and balance sheets, not to mention the lengthy development cycles common to all large corporations, upstarts like LendingClub, Poynt, Coinbase and others are pushing the boundaries.
However, as any seasoned fintech entrepreneur knows, banks still hold the power. And, as Hans Morris, former President of Visa and partner at Nyca Partners said in our recent video interview, you can’t actually disrupt the entire financial system. You may still need credit licenses, access to working capital, the ability to settle transactions, etc. This creates an opportunity for banks and entrepreneurs to work together. Easier said than done? Banks, and particularly their vendor approval departments, are notorious for red tape and excruciating business development cycles.
To break through this logjam, entrepreneurs need to focus on the most pressing consumer and banking problems. If a problem is urgent, or better yet, your solution addresses a mandated fix, bank executives will find a way to make the partnership work.
In our latest Talks forEntrepreneurs video, Dana Stalder of Matrix Partners and former PayPal executive, talks with Hans Morris about the challenges of innovating with banks and where the best opportunities exist for entrepreneurs.
Banks and Innovation: What Entrepreneurs Need to Know (15 minutes)
If you’re a fintech entrepreneur, you’re pushing boundaries. But, you can’t actually disrupt the entire financial system. Learn how to make the system work for you.
- What prevents banks from innovating
- How to partner with and sell into banks
- Where are the best opportunities
Watch and subscribe to more Talks forEntrepreneurs videos here.