The biggest banks and smallest startups must work together to keep the UK ahead when it comes to its world leading position in fintech, according to a new report.
Sandboxes, hackathons and entrepreneurs in residence are just some of the ways of collaborating identified in a new report from TheCityUK, Santander and Shearman & Sterling, through to more formal relationships such as joint ventures and even going as far as acquisitions.
“Fintech is already transforming the industry, and giving customers easier access to a greater choice of financial services, but more can be done," said the business group's operating chief Marcus Scott.
"Fintech startups and incumbents need to share expertise more effectively and work together more collaboratively to create new, innovative products and services. The key to success is choosing the right collaboration model and being clear upfront about each development stage."
Challenges to collaboration included legal issues such as intellectual property, regulatory compliance, data protection and privacy, the report found, though these hurdles had been overcome in several examples of banks and startups working together.
Santander chief executive Nathan Bostock said: “Collaboration has the potential to transform the banking industry and fundamentally change the services we can provide for our customers - with fintechs bringing the latest in technological expertise and banks utilising their scale and distribution networks."