The key stat: Seventy-seven percent of banks are feeling pressured to partner with a fintech provider, even though almost the same percentage (74%) believe that fintechs are a threat to their existence.
That’s according to banking software fintech Sopra Banking Software and Forrester’s 2023 Digital Banking Experience Report. The report findings come from a survey of 792 bank leaders in 50 countries, as well as a second survey of 12,500 bank customers in 14 countries.
Under pressure: Banks are feeling this pressure for several reasons, primarily driven by customer demands.
Benefits, but changes too: Though banks feel they might possibly be edged out by fintechs, they recognize that there are benefits from formulating partnerships with them.
Banks are also recognizing that to co-exist with fintechs and avoid obsolescence, they may need to change their business model.
Our take: The survey findings reveal that banks are coming to terms with fintechs encroaching on their territory, and that they’re adapting to remain relevant. While some banks still feel threatened by these new fintech entrants, a few points should help put them at ease.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.