33% of European fintechs faced regulatory intervention because of their partner bank

Tuesday 23 March 2021 14:00 CET | News

ClearBank, a cloud-based clearing bank, has announced a report that reveals 33% of fintechs have faced regulatory intervention due to agency banking resiliency failures.

The report ‘How well are fintechs served by banks? The state of agency banking across the UK and Europe’ explores how well served European fintechs are by their banking partners. It reveals fintechs are underserved by their current banking partners. By working with bank partners, fintechs can offer more regulated services, without investing acquiring and maintaining the licenses themselves.

ClearBank’s research is based on an independent survey of 100 fintechs across the Netherlands, Lithuania, Sweden, Switzerland, and the UK. It shows that more than 50% of fintechs see banks as mission-critical partners which help them maintain regulatory compliance, unlock new revenues, and reduce operational expenditure, but nearly half of respondents (49%) don’t believe their agency bank has helped their business.

The study also shows that fintechs felt their bank is more focused on offering loans and debt products than on facilitating payments and helping them manage their accounts.

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Keywords: fintech, banks, cloud, BaaS, study
Categories: Banking & Fintech
Countries: Europe
This article is part of category

Banking & Fintech

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