Banks could boost innovation by increasing FinTech partnerships and offering a wider range of assistance through accelerator programmes, eco-system support and early start-up engagement, according to Lloyds Banking Group.
The bank’s director of innovation, Claire Calmejane, said the industry is beginning to witness increasing engagement between banks and FinTech firms which is improving services, but said that there are four areas which boost success: partnerships, accelerators, eco-system support and start up engagement.
In an interview with Global Custodian, she explained: “Early stage engagement enables us to expose some of our FinTech mentor volunteers to new ideas and learn from start-ups [new] ways of working. These firms learn from our subject matter experts and benefit from a deep understanding of how to succeed in the … UK regulatory environment.
“Then there are bank FinTech partnerships… with the banks providing access to their customer franchise and balance sheet.”
When asked where the next balance sheet / customer sharing project will come from, Calmejane laughed and said “Watch this space.”
Lloyds Banking Group has already been working with Europe’s best known Accelerator programme – Startupbootcamp which aims to assist start up FinTech businesses succeed.
However, Calmejane said that eco-system support is perhaps the most important element of a successful FinTech/Bank partnership.
She explained: “We collaborate with Innovate Finance, the [UK] government, the regulator and investors on promoting and creating an environment that is favourable to innovation in the UK.
“With the [UK] government, for example, we launched an innovation challenge on financial inclusion. The experience has been very positive from both sides. These commitments are testament to our determination to play a large role in the FinTech ecosystem [and] to engage in the FinTech debate.