LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Comment gérer un retard de vol ?

  • 5 ways sudoku boosts brain health

  • 10 tips to successfully market your law firm

  • 7 Amazing Gifts for Kids Who Like to Cook

  • Make Mortgage Overpayments Work for You

Business
Home›Business›Fintech Companies Are Joining Forces With Credit Unions

Fintech Companies Are Joining Forces With Credit Unions

By admin
May 10, 2016
1573
0
Share:

Credit unions are increasingly joining forces with financial technology – or fintech – startups to offer new consumer-focused products to clients.

“Most of the larger credit unions have entered into partnerships or are actively exploring them right now,” says Doug Macdonald, a consulting partner in the financial practice of MNP, a national professional services firm. “It’s a symbiotic relationship. The credit unions provide members, they provide capital and a tradition of customer service, while the fintechs bring advanced analytics, plug-and-play functionality and faster time to market.”

For fintech startups, though, the biggest advantage might be legitimacy.

Many Canadians are still wary of doing business with new, online-only, financial services providers, says Kevin Sandhu, the co-founder and chief executive officer of Grow Financial, which offers personal loans.

It has partnered with First West, a British Columbia-based credit union, and Conexus, the largest credit union in Saskatchewan. Those partnerships gave the company access to customers it wouldn’t have been able to reach on its own, Mr. Sandhu says.

“Knowing that this is being offered in partnership with a tried, trusted credit union or financial institution brand and knowing that that brand, that credit union, has done the diligence,” Mr. Sandhu says, allows some credit union members to feel comfortable doing business with a company like Grow.

Worldwide, investment in private fintech companies rose from $1.8-billion (U.S.) in 2010 to $19-billion in 2015, according to a report published by Citigroup in March. It warns that disruption from fintechs might force large banks in the United States to cut their work forces by 30 per cent over the next 10 years.

“There’s this big debate about disruption versus partnership,” says Michael Garrity, who falls on the partnership side. He is the CEO of Financeit, a company that offers point-of-sale financing services to small and medium-sized businesses.

In mid-April, Financeit formed a partnership with Concentra, a co-operative that offers wholesale financial services to more than 300 credit unions.

“We fundamentally believe that there are some things that we’re good at,” Mr. Garrity says. “There are some things that we’re not very good at. We don’t have a deposit base. We don’t have a loyal set of customers who leave capital with us every day.”

That, he says, comes from credit unions and other financial institutions.

For Concentra, the partnership model allows the company to focus on its main lines of business, rather than becoming a software developer, and can help bring products to market faster, says Ken Kosolofski, the co-op’s CEO.

Canada’s largest association of credit unions, Montreal-based Desjardins Group, isn’t just doing business with fintech startups – it’s also funding them through its venture capital arm and incubating them at its “innovation lab.”

Chadi Habib, the company’s chief technology officer, says it’s not money or technology that fintechs bring to incumbent financial institutions.

“In theory, we can hire the same talent they’re all hiring,” he says. “Where we get challenged is the culture.”

Financial institutions are accustomed to working in a heavily regulated, highly structured environment, he says. “That brings along with it a certain way of working, a certain inertia.”

Fintechs, he says, “have a lot of agility, they learn by iterating and they’re focusing on areas, frankly, that are much less regulated.”

But Mr. Habib warns that there is a lot hype around fintechs and that their influence may be more limited.

He says the disruptive influence of fintechs might be limited to creating frictionless customer experiences and developing new actuarial and risk models, but he doesn’t see them moving into taking deposits or getting involved in the mortgage market.

And, he says, incumbent financial institutions remain highly trusted when it comes to protecting customers money and personal information.

Read More..

Post Views: 1,668
Previous Article

Forced Employee Ranking is a Foolish Approach

Next Article

‘Looming Catastrophe’ in South Africa as Unemployment ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    McGill Real Estate and Engel & Völkers see Montreal condominium and luxury property markets doing well, despite challenges

    December 11, 2020
    By admin
  • Business

    Pizza Hut, KFC Franchisee Taps Into ‘Fast Casual’ with Panera Deal

    September 16, 2016
    By admin
  • Business

    CRTC’s Move to Slash Wholesale Rates Could Hurt Revenue, Network Investment: Analysts

    October 13, 2016
    By admin
  • Business

    Quebec Ink: Péladeau fumes as Quebecor, BCE vie for pole position

    March 19, 2021
    By admin
  • Business

    Sobeys Withdraws Appeal of Discrimination Decision as Company Faces Boycotts

    August 28, 2016
    By admin
  • Business

    Amazon bans top selling COVID-19 vaccine book which reveals the truth

    March 17, 2021
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Agora Publishing Consortium
  3. Le Journal Canadien
  4. Dominion: Food News
  5. LeCanadian.com
  6. The Ottawa Star
  7. Capitalistocracy.com
  8. Agora Books Author House
  9. First Nations Press
  10. The Etiquette Show
  11. Ontario People's Front





Mark's



Recent Posts

  • Comment gérer un retard de vol ?
  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19
  • Catching Covid-19 after being vaccinated isn’t a myth. It happened to me
  • My COVID Story: “I got COVID after being fully vaccinated”
  • Albertans fully vaccinated for COVID-19 urged to stay cautious during pandemic’s 4th wave
  • I got the vaccine – and then I got Covid: Readers share their stories

Most Viewed Posts

No Posts found

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating