Fintechs and Banks – Friends or Foes?

In recent years, fintechs have shaken up the financial services market. They are fast, agile and innovative. And they are taking an ever-bigger piece of the traditional bank’s pie. Conflict is inevitable. Or is it?

Mobile everything

Fintechs support us in our daily lives. Today, 46 percent of consumers use services from at least three fintechs.

Spotting the differences

The world’s best-known fintechs enable us to pay with our smartphones, take out loans with just a few clicks and transfer money across borders – anytime, anywhere and within seconds. But how exactly do fintechs differ from traditional banks?

Special talents

Fintechs tailor their services to customer needs. They are bold and playful, fast and agile.

Fully digitized

They work in networks according to the platform principle. For some of their services, users must grant them access to their bank data. Above all, fintechs are spearheading the digital revolution in the financial services market.

Valuable relationships

The greatest asset of traditional banks is precisely these longstanding customer relationships. Banks protect their customers’ data and thus ensure that payment processes, for example, are secure.

Getting closer

No wonder that 60 percent of banks are now expanding their in-house capabilities to enhance interaction, convenience, ease of use, transparency and value. Just as many see fintechs as attractive partners in efforts to develop new services for their customers.

Pay now

This year, 90 percent of smartphone users will make at least one mobile payment. By 2022, we will be paying almost 30 percent of all our bills for goods and services this way.

Maximum comfort

Next year, nearly three billion users will conduct banking transactions using their smartphone, tablet, PC or smart watch, an increase of 52 percent over 2017. Banks and fintechs must enable a seamless user experience.

New cryptocurrency

The RippleNet payment network, which is based on blockchain technology, now has more than 300 customers worldwide, including many well-known banks and fintechs. Users pay for cross-border transactions within seconds using the XRP cryptocurrency. They no longer need to maintain an account in a foreign currency and thus save prefinancing costs.

More participation

But the best thing is: working together, fintechs and banks can build a more inclusive economy. They can, for example, help the two billion people without bank accounts in the world escape poverty by facilitating investments in their health, education and businesses.

Good prospects

Banks and Fintechs are growing closer. They can still learn a lot from each other. And together they can make the economy more efficient AND more social.

If you would like to get further insights into a broad range of topics that shape our world, please visit Deutsche Bank Research Webpage.


MOBILE EVERYTHING: World FinTech Report 2017, Cap Gemini
VALUABLE RELATIONSHIPS: World FinTech Report 2017, Cap Gemini
GETTING CLOSER: The Evolution of the Mobile Payment, Tech Crunch 2016;
Global Payments Report 2018, Worldpay
PAY NOW: Digital Banking Users to Reach Nearly 3 Billion By 2021, Representing 1 in 2 Global Adult Population, Juniper Research, 2017
MAXIMUM COMFORT: Blockchain Payment Report, Ripple
MORE PARTICIPATION: 2 billion people worldwide are unbanked – here's how to change this, Word Economic Forum, 2020

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