Wall Street insiders are calling on big banks to stop pretending to be fintechs. While acknowledging the power and customer base possessed by big banks, insiders believe that banks are simply not suited to compete with true fintechs. Banks are hindered by red tape and regulations and struggle to keep pace with the ever-evolving technological landscape. Additionally, many fintechs are struggling to survive in the current economic climate, making it tempting for big banks to acquire them. However, insiders warn that banks must be upfront with these startups and not claim to offer them autonomy or pretend that things will be business as usual after the acquisition.
As banks look to expand their technological capabilities, they must be cognizant of the fundamental differences between themselves and fintechs. While banks have the power and financial resources to acquire startups, they must be willing to work with the startup teams to ensure that their unique strengths and offerings are preserved. This will require honest communication and a willingness to adapt to the needs of the startup. Only then can banks hope to compete with fintechs and keep pace with the ever-evolving technological landscape.
