Partnership with Fintech
Traditional financial institutions and Fintech have partnered to increase market share and customer reach while promoting financial inclusion and innovation. Fintech startups in India have many options to work with more established companies to grow their customer base and gain access to resources and experience.
The partnership created a unified digital platform that allowed companies to manage their international supply chains from any device easily.
Furthermore, traditional financial institutions are now able to provide their clients with innovative solutions in collaboration with Fintechs and legacy banks. By collaborating with fintech, businesses can also have access to long-term revenue streams and expansion opportunities.
Satisfied clients A cooperative engagement between established financial institutions and cutting-edge financial technology firms is referred to as a fintech partnership. Through this strategic partnership, conventional banks, credit unions, and other financial service providers can extend their product offerings, improve customer experiences, and streamline operations by using cutting-edge technologies and digital solutions provided by fintech companies. We help businesses get access to a larger consumer base and regulatory knowledge in exchange. By bridging the gap between traditional financial services and the digital era, our team helps to increase the financial industry's competitiveness, efficiency, and agility. Staff members of the Federal Reserve met with community bankers and other industry participants across the nation in early 2021 to learn more about their approaches to risk management and their associations with Fintech companies. Fintech partnerships are divided primarily into three categories (1) Operational technology partnerships (2) Customer-oriented partnerships, and (3)Front-end Fintech partnerships A bank aims to increase efficiency, optimize workflows, improve oversight, and/or strengthen regulatory compliance through an operational technology partnership (also known as reg-tech or regulatory technology). The objective of this collaboration is to enhance the bank's internal processes and systems, including loan underwriting and fraud detection. A collaboration that employs artificial intelligence (AI) to automate the underwriting or credit judgment processes is one example of this. In recent years, the Consumer Financial Protection Bureau's (CFPB) primary area of responsibility has been to reduce the problems; bank business lines like compliance and audit should be included in the due diligence and risk assessment process. Through customer-oriented collaborations, a bank can improve a feature of its customer-facing platform without having to deal with customers directly through Fintech. Money transfers between individuals and account opening tools are two instances of these collaborations. Historically, community banks have been limited by their physical location. Customer-oriented partnerships have the potential to assist community banks in meeting the needs of current clients and attracting new ones by adding their digital presence. We offer to reduce any risks related to the Bank Secrecy Act (BSA), a bank investigating a Fintech collaboration that enables the opening of deposit accounts or loan originations, for instance, should adhere to its customer identification program, customer due diligence program, and beneficial ownership program. Additionally, a bank may be judged to have engaged in unfair or deceptive acts or practices (UDAP) if it neglected to make the necessary disclosures on the recently improved customer-facing platform. It is also known as banking-as-a-service or BaaS, and front-end-facing partnerships are the least prevalent but fastest-growing subset of collaborations. Through the use of the bank's infrastructure, a Fintech company can engage directly with a customer by offering services or banking products. Fintech clients frequently aren't aware that a bank is participating in the service or transaction, and the bank might be viewed as a silent partner under these agreements. These collaborations frequently seek to expand deposits, diversify the bank's lending portfolio, and boost income streams by fusing a fintech's technology capabilities with a bank's infrastructure. By 2025, the Indian Fintech market is expected to be worth $1.3 trillion, making it the third largest in the world. Fintechs will need to work with major, well-established companies across a range of industries, from banks in need of cutting-edge but affordable technological solutions to merchants looking to offer checkout financing to secure a healthy piece of this market. Fintech companies can grow their customer base and obtain access to resources and knowledge by partnering with platforms, third-party apps, accelerators, and incubators, among other organizations.
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Here's what Hindcred has to Offer
Advising on strategic partnerships with fintech companiesGuidance on Fintech solutionStrong Network of 1500+ Fintech PartnersDedicated customer support throughout the processEnsure business growth with long-term revenue opportunitiesRisk assessmentAssist with data securityEnd-to-end assistance
Why Choose Hindcred?
The Lending-Hub Advantages
Minimal documentation process 5X faster turnaround time than other players in the market Flexible Fintech partnership options Facilitates Long-term Revenue Opportunities Easy online process Compliance and Regulation Support Agile Decision-making AssistanceOne-click-apply process
Types of Fintech Partnerships
Partnership for Operational Technology
Customer-focused Partnership
Front-End Fintech Partnership
Advantages of in partnership with Fintech Startups
Additional benefits that come with collaboration include:
Enhancing the capacity to access a larger client base by utilizing partners' customer networks
Growing the company and gaining market share
Cutting expenses and providing a competitive advantage
Fostering innovation and expansion for Fintech firms.
How to build strong partnerships with Fintech companies
Gaining fast access to Fintech APIs for smooth operations is a method to attract regular clients who will not only encourage repeat business but also act as brand ambassadors, promoting the company's name.
To facilitate consumer financial management, big traditional banks are leading the way by working with up-and-coming businesses in the cryptocurrency, net banking, digital lending, and mutual fund investing spaces.
Creating a Successful Fintech Partnership with Hindcred
For a partnership to be mutually successful, both sides must strive for equal commitment and involvement, not just for financial gain. Innovation, impact, and, ultimately, the sustainability of overall returns should be spearheaded by each partner. Measurable and strategic KPIs are the best means of ensuring all of this.
At Hindcred, Fintech collaborations facilitate easy and secure data sharing while providing traditional finance firms with access to large amounts of data.
We provide a unique customer experience through collaboration with fintechs.
Industries we Cater to
Hear it straight from our satisfied and happy clients.
I can't praise Lending Hub enough for their audit preparation service. Their meticulous attention to detail and organization ensured our audits ran seamlessly. Their team's financial analysis and reporting also provided us with valuable insights for future growth.
We owe our financial stability to Lending Hub. Their cash flow management service helped us maintain liquidity even during tough times. Their financial analysis and reporting provided clarity in decision-making. We're truly grateful for their exceptional Lending Hub support.
Lending Hub has been a game-changer for our company. Their cash flow management expertise helped us sail through challenging times, and their strategic insights have taken our business to new heights. We couldn't have asked for a more dedicated and knowledgeable Lending Hub partner!
Lending Hub business strategy service has been instrumental in our success. Their tailored strategies have not only improved our profitability but have also given us a clear roadmap for the future. Their NBFC expertise has become an invaluable asset to our organization.
A Fintech company can engage directly with a customer by offering services or banking products. Fintech clients frequently aren't aware that a bank is participating in the service or transaction, and the bank might be viewed as a silent partner under these agreements.
Fintechs may reach a larger audience by utilizing big banks' extensive and well-established client base. Fintechs can take advantage of this to establish strategic alliances that will enable them to grow their product offerings, enter into new markets, and obtain insightful knowledge about the sector.
To create financial products like immediate Digital FDs and savings accounts, Shivalik Small Finance Bank has teamed up with fintech company Falcon.
Rules for establishing a FinTech business in India
Collaborations between banks and fintech companies are a great way to use technology to enhance banking and provide customers with quicker, more convenient access to resources and services. Regulators should be commended for completing the third-party guidelines and realizing the value of these collaborations.
Traditional banks focus more on processes, but fintech businesses place a strong premium on customer ease. Fintech companies are not subject to the same stringent regulations as traditional banks, which they must adhere to.
Many banks find that working with a fintech rather than creating or purchasing can provide them with faster, more cost-effective, and economically viable access to innovative capabilities. In an era where the market capitalizations of many fintech companies have decreased, partnering might be a useful strategy to test-drive possible acquisition targets.
According to a poll done in 2021, about two-thirds of banks and credit unions partnered with fintech companies at least once in the previous three years, and 35% of them invested in fintech companies.
Because they might not be bound by the same security laws as conventional financial institutions, fintech businesses are more susceptible to security lapses. Additionally, customers may find it challenging to assess security measures offered by various organizations due to the fintech industry's lack of standards.
FinTech makes financial transactions easier for organizations and customers to do, increasing accessibility and typically lowering costs. It can also apply to businesses and services that use big data, encrypted blockchain, and artificial intelligence (AI) to enable extremely safe internal network transactions.
Fintech businesses frequently offer specialized services in a simplified manner that is very practical for end customers. On the other hand, banks frequently offer a greater range of financial services, some of which customers might never see or be aware of.
The Department for Promotion of Industry and Internal Trade (DPIIT) in India has 3,085 fintech startup registrations. India's Fintech industry has received money, making over 14% of global funding. India comes in second for deal volume.
The fintech sector has several obstacles to overcome. Notable ones include frequent security lapses, a lack of transparency, intense competition, rules and laws, and a subpar customer experience. With the correct tech knowledge, these problems can be minimized.
Financial technology, or fintechs for short, is any digital software or technology that automates or simplifies financial services. Fintech NBFCs are a subset of non-banking financial institutions that provide financial services through the use of cutting-edge financial technology.
In the practical space, fintech shakes hands with chartered financial institutions in order to deliver banking services such as small business loans, FDIC-insured Savings Accounts, and payment services.
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