The Banking Executive Magazine - July Issue 2021

Banks and FinTech Partnerships GoFinance is in a perfect shape to not only serve banks but ultimately serve brokers and customers, who will also have 24/7 access to the plat- form for regulated and digitised transactions. Emphasising the relationship be- tween brokers and FinTech plat- forms, Ali Imran added, “When the demand for sales concept increased, banks started to hire outsourced sales staff through 3rd party partners and simultaneously considering and set- ting up their own outsource compa- nies to convert this opportunity. This proved to be a successful model and banks had a greater reach into the market through this model, with up to 12,000 sales officers working in this space by 2005. Banks also started considering alternative sales channels where complete third-party companies would solicit business at no fixed costs. A whole new industry was born. Today there are over 60 re- tail banking brokerage companies who specialize in this domain and employ over 3000 salespeople mostly employed on commission basis.” While the business is ample for bro- kers today, most of the business sourced is still physical. Post Covid- 19, the customers prefer instant digi- tal solutions where they can compare, apply, and get their prod- uct requirements full-filled instantly, as opposed to a traditional sales offi- cer visiting them in their personal space and time. In time, there will be more digital platforms such as GoFinance, servicing consumer banking requirements. GoFinance will provide customers end-to-end solutions to search, com- pare, choose, apply, and receive dig- ital fulfilment of financial products. It aims to offer best real time deals and options for financial products such as personal finance, property finance, car finance, credit cards, etc. In ad- dition, car, health and other insur- ance products will be listed on the platform further down the line. Go- Finance has already tied up with sev- eral government institutions, corporations, banks, and valuation companies in the UAE to provide the best retail banking and insurance deals to customers. According to Imran, the advantages of FinTech companies and brokers go beyond just increasing revenue. Some key benefits of FinTech and broker collaboration include instant fulfilment 24/7, increased ease-of- use through a simple digital seamless customer journey , broaden con- sumer base, building up brand repu- tation, offering additional services to customers like bill payments and in- surance among other factors reduced costs and ability to scale quickly. Globally, partnerships between Fin- Tech and banks are transforming to be a profitable proposition with an increasing number of financial serv- ices companies turning to FinTech to grow their company’s revenue. As such, experts suggest that banks, bro- kers and FinTech companies should find creative and innovative ways to collaborate, in order to simplify the banking experience for customers and help Middle East FinTech ecosystem reach its full potential. ISSUE 151 JULY 2021 the BANKING EXECUTIVE 35