Traditional Banks Must Embrace Tech Before It’s Too Late
Traditional banks have a big decision to make this year.
Be memorable or be forgotten.
The ongoing trend where banks are partnering with fintechs in some form has accelerated. Embedded finance, which is essentially interconnected, integrated, automated, online banking services, is projected to generate $230 billion in revenue in 2025, which is a 10x increase since 2020. As a result, 10% of banks are developing a banking-as-a-service strategy and another 20% are assessing the option.
Consumers want banks to make the digital shift, and government has made the possible future clearer. Last year, one of President Biden’s executive orders encouraged one of the nation’s financial guardians, the Consumer Financial Protection Bureau, to prioritize Dodd-Frank regulations that would make it easier for consumers to access their data and transfer it to other banks and fintechs. In 2021, banks invested $80 billion in technology while fintechs raised $140 billion to disrupt the industry, according to the Financial Times.
This is such a hot topic right now, and we were recently asked to speak at several industry events, including the Financial Managers Society of Philadelphia and Northern New Jersey Community Bankers, about the intersection of banks and fintechs.
That’s why New Jersey Business Magazine asked us for our expertise. So did the Exit Strategy Exchange.
When members of the media ask us for the latest insight about banks merging with fintechs, we ask CFO Consulting Partners’ Rob Milrod to help. He’s our fintech lead and also supports the firm’s Financial Services and Insurance practice.
Rob is a finance leader with more than 25 years of experience, including audit experience at a Big 4 public accounting firm, senior global roles at Citigroup in finance, investor relations and sales and consulting work with smaller companies and startups. More recently, he has provided hands-on fractional CFO support to build financial infrastructure and operating discipline at e-commerce, fintech, nonprofit and private equity portfolio companies.
Our growing team includes former CFOs, controllers and auditors who understand where you are in the business cycle because they used to sit in a similar seat. We share our experience so you can profit from it. We help companies across many verticals, including banking, fintechs and technology just to name a few.
CFO Consulting Partners is comprised of a team of senior financial executives. We provide a broad range of financial management services to public and private companies. We work for CEOs, CFOs, as well as audit committees and boards. Our mission is to apply our consultants’ considerable collective experience to resolve client issues in a professional and efficient manner.
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