The art of successful bank–FinTech partnerships: Making preparedness a cornerstone of a new era in financial services

The evolving financial services landscape is increasingly characterised by robust collaborations between financial institutions (FIs) and third party providers (TPPs), a trend driven by widespread industry recognition of their strategic value. While FinTechs have historically accelerated agility and innovation, the dynamic has evolved from adversarial competition to mutual collaboration, reflecting a shared understanding of reciprocal value between FinTechs and FIs. This strategic approach allows both parties to leverage the established scale, regulatory frameworks and trusted brands of incumbent FIs. Despite the benefits, a considerable number of business relationships often struggle to operationalise effectively. This is largely attributable to factors such as ineffective strategies, scalability challenges and organisational misalignment, thereby highlighting the crucial need for comprehensive preparation. This paper outlines the essential elements for successful, mutually beneficial partnerships, emphasising preparedness across all stages: planning, due diligence, contract negotiation and ongoing monitoring. It provides purported best practices and business intelligence on what effective preparedness and strategic planning should entail for both FIs and TPPs at each phase of the partnership lifecycle. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.