New coalition for bank resilience

The relationship between traditional financial and banking players and FinTechs is far from linear. The only competitive opposition between these players is indeed simplistic, while their collaborative efforts have also often led to major innovations and global developments for the market. A new initiative illustrates this second dynamic, mobilising various British actors around financial innovation.

FACTS

• A new coalition of financial institutions has just emerged in the United Kingdom. It involves leading players such as Sword Group, Natwest, Morgan Stanley, Dudley Building Society, The Tipton, Unity Trust Bank, M&G, Pinsent Masons, Tesco Bank, Aberdeen, KPMG and EY.

• This coalition is also led by FinTech Scotland, via the Financial Regulation Innovation Lab (FRIL) in collaboration with SuperTech WM. It is presented as a tool to stimulate innovation in operational resilience, focusing on the collaboration of all players in the financial sector, traditional banks as well as FinTech.

• It takes the form of an open competition with FinTechs around the world to present their innovative solutions. And these solutions will come in particular from FinTechs selected to participate in this effort, themselves benefiting from the know-how of the historical actors to realize their offers.

• The leading players behind the coalition are therefore using the Fintech market to co-create future solutions, new generations, which will preserve the current financial system while adapting:
  • the new and increasingly digital context,
  • consumer expectations.

• The FinTechs selected by the coalition will receive a grant of up to £50,000 to accelerate the development of their solution. Applications are open internationally until August 15.

ISSUES

• Bringing solutions for the future The coalition will need to identify practical and scalable solutions to help financial sector companies remain resilient, responsive and secure.

• Ensuring the sector's operational resilience : The creation of this coalition defends above all the objective of stimulating innovation in the operational resilience of British financial institutions in the broad sense. It is in this context that traditional actors have chosen openness and collaboration.

• Meeting the expectations of regulatory institutions In particular, operational resilience is identified as a key priority for British regulators, the CFA, the Bank of England and the British Treasury.

PERSPECTIVE

• This initiative demonstrates once again that competition between traditional players and Fintech is counterproductive and outdated. This type of structured collaborative effort, as currently carried out by FinTech Scotland and its partners, is indeed a means of combining forces to achieve a common goal of sustainability of activities but also of adaptability to external threats.

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