US community banks form FinTech alliance
Collaboration amidst competition has been a hallmark of the financial services space, as traditional financial institutions (FIs) join forces with FinTech startups. To that end, news broke earlier this week in the United States that a dozen community and regional banks have formed a group to explore opportunities among FinTech offerings.
The group, which will be called the Alloy Labs Alliance, according to a Press release, is managed by FinTech Forge. Banks will pool their resources to “share opportunities”, where small businesses will explore specific areas of interest through the formation of small working groups. The statement said the group will help FinTech startups “shape their solutions while reducing execution risk.”
Julieann Thurlow d’Alloy, CEO of Reading Cooperative Bank, said: “Community banks play a special role in the lives of our customers, but we don’t have the same IT and innovation budgets as the big banks to capitalize on. on this relationship.
According to BankTechnology, Alloy also said that banks that are not quite “ready to start adopting new technology” can still join the alliance to share their findings and learn from others.
The alliance includes a dozen companies with between $ 251 billion and $ 20 billion in assets. Associated names include Citizens & Northern Bank (based in Pennsylvania), Inland Bank (Illinois) and Lincoln Savings Bank (Iowa).
In the UK, a number of banks and FinTech companies have worked in tandem to promote guidelines that will strengthen the working relationship between these parties. the group includes banks such as the Royal Bank of Scotland (RBS) and Santander, and FinTech companies like The ID Co. and MarketInvoice.
The guidelines are being developed by the British Standards Institution, according to reports last week. The standards aim to tackle issues that “interfere” with collaboration, make room for efforts such as FinTech companies “show up” to banks, and provide insight into regulatory issues spanning integration and due diligence. .
“We need to make it as easy as possible for newcomers to collaborate with the bigger players. That’s why we helped set up the FinTech Delivery Panel and, with the guidance released today, the industry will be able to work more closely, benefiting customers across the country, ”said John Glen MP, Secretary from the Treasury, in a press release announcing the efforts.
“We need to make it as easy as possible for newcomers to collaborate with the bigger players. That’s why we helped set up the FinTech Delivery Panel and, with the guidance released today, the industry will be able to work more closely, benefiting customers across the country, ”said John Glen MP, Secretary economics of FinTech from HM Treasury. Sector strategy, in a Press release.
Here in the United States
In the United States, sandboxes take the place of titles a bit. Arizona, which launched a “sandbox” earlier this year, said last week that there was a new participant in the FinTech-focused initiative. This brings the total number of companies in the sandbox project, which was announced in March of this year, to three.
This time around, Sweetbridge is using blockchain in a lending context. The company is testing token-based asset loans over the next two years and covering 10,000 state residents. As noted, in the sandbox model, FinTech companies have two years to bring services to and test new markets, on a limited basis and with a view to wide adoption.
According to CryptovestSweetbridge Legal Projects Manager Will Munsil said: “We believe it is possible that token asset-backed loans lead to a less expensive and more accessible type of capital for many families in Arizona. We believe now is the perfect time to live in Arizona, and we are excited to bring our transformative business models to the citizens of Arizona.