The Power of Collaboration: Fintechs and Banks Partnering for Open Banking Success in Europe

Open banking is "Open" and by inference collaborative. Whilst many still believe that Banks and Fintechs are largely competing against each other, a more careful look at the Financial Services industry will show that there is already a very large degree of collaboration between the two. Collaboration is the driving force behind innovation and growth not only in the financial services sector but also in many other. The European financial services ecosystems is a prime example of such collaborations, where Fintechs and banks have been joining forces to unlock the true potential of open banking. The following examples of large banks and fintechs collaboration should motivate and pave the way for also the smaller banks and fintechs to do the same and gain the competitive advantage that comes with such types of partnerships:

1. Revolut & HSBC: One notable collaboration in Europe's open banking arena is the partnership between Revolut, the financial technology unicorn, and HSBC, one of the world's largest banks. By integrating with HSBC's Open Banking API, Revolut was able to offer its customers enhanced financial products and services, including account aggregation and real-time transaction data. This partnership not only expanded Revolut's offerings but also showcased how two giants in the industry can work hand-in-hand to create value for customers.
   

2. Solarisbank & Deutsche Bank: Another compelling example of collaboration can be found in the partnership between Solarisbank, a Berlin-based digital banking platform, and Deutsche Bank, one of Germany's leading financial institutions. By leveraging Solarisbank's banking-as-a-service infrastructure, Deutsche Bank was able to quickly and efficiently launch its mobile-only banking app, "db mobile." This collaboration cemented their position as pioneers in digital banking and demonstrated the power of combining traditional banking expertise with cutting-edge technology.
   

3. Klarna & Santander: Klarna, the Swedish buy-now-pay-later giant, teamed up with Santander, a globally recognized bank, to provide customers with a seamless shopping experience. Through this strategic collaboration, Santander integrated Klarna's payment solution into its banking app, allowing customers to make instant purchases and take advantage of personalized offers. This successful partnership highlighted the potential of bridging the gap between Fintech innovation and traditional banking services.
   

4. N26 and Commerzbank: N26, a German mobile bank, partnered with Commerzbank, a leading financial institution, to enhance their offerings and tap into new customer segments. By integrating Commerzbank's mortgage products into its digital platform, N26 expanded its service portfolio and strengthened its value proposition. This collaboration illustrated how Fintechs can leverage established banks' expertise and diverse product offerings to cater to a broader customer base.
   

The partnerships between European Fintechs and banks are revolutionizing the financial services industry by leveraging open banking opportunities. Collaborations like those between Revolut and HSBC, Solarisbank and Deutsche Bank, Klarna and Santander, and N26 and Commerzbank enable innovation, expand product offerings, and ultimately deliver enhanced customer experiences. These real-life examples demonstrate the power of collaboration in driving open banking success, inspiring ambitious entrepreneurs to seek strategic partnerships that can propel their businesses to new heights.

If you are on either side of the coin and would like to explore partnerships with diverse providers both from the banking and fintech world, reach out to us at contact@fintechlink.biz and we'll be happy to assist you.