Lenders are turning to outsourced technology solutions to support their operations while remote working during the Covid-19 crisis.
Val Novikov, chief technology officer of embedded banking platform FISPAN, said his US-based fintech firm works with lenders, most of which are banks, to implement and maintain new technology while keeping costs down.
He said FISPAN has seen increased demand from lenders this year, due to the challenges of remote working during the pandemic.
“Covid-19 impacted the rate of financial services digitisation because the adoption of financial services has increased rapidly as accounting teams are forced to work remotely,” said Novikov.
“Manual and in person processes, like physically walking into a bank branch to deposit a check, have been limited severely.
“This past year has shifted the state of the fintech market because customers are more comfortable doing personal banking online, in addition to business banking customers turning to digital platforms.
“Banks are struggling to keep up with this sudden shift in types of online service offerings with shifting client demands.
“Companies look to partnering with fintechs instead of taking on innovation plans internally because technology has moved too fast for the banks to build those capabilities themselves. They can easily reduce technical debt while taking advantage of fintech expertise through a partnership.”