Banks should work with fintech firms

KUALA LUMPUR: Banks need to work with financial technology (fintech) companies to strengthen their proposition in the financial market.
The Global Islamic Finance Forum (GIFF) 5.0 organising chairman Nazlee Khalifah said local banks, be it conventional or Islamic, are only beginning to look at fintech, and there are many opportunities to look at, such as crowdfunding, e-wallet or in any other areas that the bank wants to embark on.
“With fintech, people don’t go to banks anymore. Banks have to play an intermediation role and work with fintech (companies) to contribute to the financial market. Rather than become competitors, we might as well work together to strengthen our proposition to customers,” he told a press conference on GIFF 5.0 here yesterday.
“We need to embrace this (fintech). We need to bring them (fintech companies) onboard to work together with us. They have ideas and we have the customer base. Rather than we continue our traditional banking, fintech will surely play in the same space. We’ve seen it in China and USA. It’s borderless,” added Nazlee, who is also Affin Islamic Bank Bhd CEO.
He said some banks have worked with fintech companies to develop products and innovation.
“Definitely you need to touch base with fintech players in one way or another. We hope for GIFF 5.0 to open up (the fintech space) and we have fintech (players) coming in to pitch their products and banks can start looking at what is suitable for them,” said Nazlee.
He added that GIFF 5.0 is not necessarily aimed at striking monetary deals but also forming strategic partnership between banks and fintech companies.
GIFF 5.0, which will be held from May 10 to 12, 2016 at Sasana Kijang, Kuala Lumpur, aims to spark discussions and ideas around new business models, new strategies, fintech, enhancing competitiveness and expanding the reach of Islamic finance. Its line-up includes the Asean Fintech Challenge, syariah-compliant real estate crowdfunding and pitching of Islamic funds.
“GIFF’s focus on fintech is aimed at encouraging the industry to embrace fintech. New frontiers like blockchain are opening up, and the industry need to be able to partner with innovators and adopt new ideas in order to thrive,” said Nazlee.