I believe fintech will be one of the major differentiators for conventional banks going into the future. But many banks are turned off by the risks associated with such new companies.
The banks that can learn to work with their CISO, Risk Officer, and other members of the executive team to manage the risks of these relationships will come out on top.
I plan on writing several articles on this soon, but until then, here is a short video clip from BankDirector.com on how one CEO works to manage this. If you only have a minute, skip to 2:45 in the video to see how the approach must change...
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Not all banks are comfortable taking on the risks of partnerships with startup fintech companies. Mike Butler is the president and CEO of Radius Bank, a $1 billion asset, Boston-based bank with three offices, and a national customer base serviced through innovative online and mobile technology.
Click below to see the video on the bankdirector.com website:
http://www.bankdirector.com/index.php/issues/risk/bank-ceo-manages-risks-doing-business-fintechs/