3 reasons why collaboration between fintech firms and banks makes sense

There may not be much merit in pitting one against the other, reports Tech in Asia

The battle between banking behemoths and new-age fintech firms may seem like the classic David versus Goliath. But dig a little deeper and there may not be much merit in pitting one against the other.

While some collaborations are already underway, others are likely to take the following routes.

Accelerators

Banks can act as incubators or accelerators for fintech start-ups. Banks like Barclays, HSBC, and Royal Bank of Scotland are part of Innovate Finance that promotes global fintech firms in the UK. Back home, most banks are supporting fintech firms through various accelerators. 

Acquisitions

Banks could acquire youngish fintech firms to plug their own gaps