Liting Tan, Director, Group Strategy, Barclays shares her insight on the interaction of banks and FinTech companies and enabling effective partnerships.
Liting, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?
I have been working at Barclays in various Strategy roles across the organization since 2013. I am currently a Director in Group Strategy.
What are the essential considerations that need to be made when building mutual partnerships?
Not every FinTech company will benefit from partnering with major financial institutions – it all depends on the nature of their business and where they are on their journey. A successful collaboration requires both sides to be open at the very beginning to clearly define what success looks likes. In partnering with FinTechs, large organizations get access to innovative ideas, cutting edge technology and an injection of energy. In exchange, FinTechs get valuable exposure to senior business leaders, including feedback on an emerging idea or product and advice on how to navigate a very complex industry.
In your opinion, what is the best way for start-ups to tackle the challenge of forging a relationship with big organizations?
Start-ups need to understand that, when partnering big organizations, sometimes it can take a while to get moving. It often takes up to 3-6 months or even longer to define and kick-off a formal collaboration and, if this timeline does not work, they should not waste their time.
At the FinTech Europe 2017 Summit, you will be a participating on the panel ‘Competition vs. collaboration: Reviewing the interaction of banks and FinTech companies.’ Why do you believe this is a key talking point in the industry right now and what can professionals gain from this insight?
The pace of change is even faster than expected in the industry, and everyone needs to tap into the flow of ideas and keep on top of shifting consumer and corporate sentiments. You can’t do that if you are isolated.
What impact can a lack of FinTech understanding, knowledge and experience have on a Financial institution?
Technology is a fundamental aspect of all major financial institutions and yet agile FinTech start-ups lead the way when it comes to disruptive innovation. I think it is incumbent on financial institutions to engage with, learn from and leverage the FinTech community, otherwise they risk missing out on a whole field of innovation – and ultimately being disadvantaged and left behind.