Deutsche Bundesbank President Jens Weidmann recently said that FinTech requires more regulatory oversight because of its potential to threaten financial stability and the banking sector, but some believe this isn’t the case.
In a report from PYMNTS, FI.SPAN’s founder and CEO, Lisa Shields, is reported as saying that the FinTech sector can help banks out and boost their commercial B2B business.
According to the report, the business commercial banking segment is worth $1.85 trillion worldwide. However, banks are reported to have estimated that around $500 billion of that sum is expected to be removed by third parties or FinTechs over the next five to seven years.
Of that $500 billion figure, a significant portion is expected to come from paper payments that have moved into electronic form.
What Needs to be Done?
According to Shields, API in banking is what’s needed; however many businesses may not necessarily use API, but API is what many FinTech company’s use.
For large banks surveying the FinTech scene, this may seem like an attractive option for banks who want to work together and improve their capabilities.
For it to work, though, both sides need to figure out how they fit together that makes sense to both parties involved.
https://www.cryptocoinsnews.com/fintech-can-help-banks-tap-500-billion-hole/
