'Marriage is never easy', but big banks still have eyes for fintechs
The relationship between banks and fintechs has not been helped by the rising rate cycle, but big bank bosses reckon the mutual attraction remains.
It may not seem apparent from recent moves in their VC businesses but major banks say they still have eyes for fintechs. And in some cases, they may still want to end up in long term relationships with them.
Australia's major banks have in recent years launched venture capital arms managed at arm's length from their core operations, and/or taken direct equity stakes in fintech businesses, in a bid to protect themselves from disruption and to keep abreast of new technological and business model developments in the industry.
The Australian Financial Review recently ran through the travails of the major Australian banks apparent retreat from VC, with some outfits wound up, and others scaled back or losing key executives in a reflection of the “tech winter” which set in as the interest rate cycle swung upwards.
But speaking on a panel at the Intersekt23, key executives from Commonwealth Bank, ANZ’s external VC arm 1835i and Bendigo & Adelaide Bank said fintechs were still important for big banks, with the potential to add critical strategic attributes to large organisations, notably innovation, culture and nimbleness.
