How 3 banking leaders partnered with fintechs for growth
Banks are increasingly looking to grow beyond their branch footprints, with the launch of BaaS and digital banking brands being two of the most dominant strategies. The details under these strategies tend to vary widely, but one thing they generally have in common is the pursuit of fintech partners. Here's an overview of how three banks went about implementing what is a complex undertaking for a community bank and what they hope to accomplish going forward.
Fintech partnerships play a pivotal part in the strategies of a growing number of banks.
Whether that strategy happens to be offering banking as a service or launching a separate digital banking brand, the intent for many community banks is to attract customers outside of the branch footprint — and fintechs are key.
Legend Bank in Bowie, Texas, expects to line up multiple fintech partners for its new BaaS offering by the end of 2024, says Jared Robinson, the fintech program manager there.
He likens Baas to a “thrilling roller-coaster ride” for community banks. “It promises new deposits, fresh customers, impressive shareholder returns, and the chance to keep up with the fast-paced digital world,” Robinson says. “But let’s be honest, it’s also a daunting challenge.”
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