British bank NatWest is launching a program to help scale the country’s FinTech startups.
The lender’s FinTech Growth Program, announced Wednesday (Dec. 4), is designed to give fledgling companies the resources, networks and expertise of a large bank, with the hope that participants will help bolster NatWest’s innovation efforts.
“This program lays a pathway to create better outcomes for our customers,” David Grunwald, director of NatWest Innovation, said in a news release. “Working this closely with FinTechs and UK entrepreneurs strengthens our ability to be future focused, while supporting the growth of the innovation economy.”
According to the release, NatWest plans to pick five FinTechs that offer solutions for specific problems in the payment sector, saying this is an ongoing issue in an increasingly digital world. Participating startups should be based in the U.K. and pre-Series A stage.
During 10 weeks of workshops, mentoring and coaching, NatWest will work with these FinTechs to “co-create solutions to lead the future of banking,” the release added. “The small cohort boasts opportunities to connect, learn and build networks with other fellow fintechs, coaches and NatWest’s dedication Innovation function.”
Writing about bank-FinTech partnerships earlier this year, PYMNTS argued these collaborations are becoming critical to “accelerating the adoption of open banking solutions and overcoming the challenges that financial institutions face in delivering horizon innovations to their end users.”
Although banks are typically established, trusted financial institutions, many are burdened with older systems and are slower to innovate. FinTechs, meanwhile, are nimbler, less burdened by regulatory oversight and able to test new solutions through trial and error.
“These bank-FinTech partnerships allow everyone to bring what they’re best at to the table,” Moa Agrell, senior banking relations manager at Trustly, told PYMNTS.
For banks, this means tapping into FinTechs’ ability to quickly innovate and adapt. For FinTechs, partnering with established banks lets them access industry knowledge, regulatory expertise and trust built over decades. These partnerships can ultimately drive progress.
“It can be a win for the bank, a win for merchants, a win for consumers and a win for the industry overall,” Agrell said.
Meanwhile, the Federal Deposit Insurance Corporation (FDIC) is proposing new rules that could impact these partnerships, as covered here earlier this week.
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