Blurring the Line Between Fintechs and Financial Institutions

How open banking is transforming financial services

Fueled by open banking capabilities, the intersection of fintechs and financial institutions continues to transform financial services. Both players offer inherent strengths and opportunities in the delivery of differentiated, convenient and personalized experiences.

In a recent conversation, David McIninch, senior vice president for strategy, marketing and product management, Fiserv, discussed how open banking is blurring the lines between fintechs and financial institutions.

As open banking continues to evolve, many financial institutions are partnering with fintechs to deliver banking as a service. At the same time, fintechs are expanding their offerings to incorporate traditional financial services, such as debit cards and lending.

Fiserv is focused on helping financial institution clients participate in this economic and digital revolution, McIninch said. Developers, whether from fintechs or financial institutions, can code off APIs directly through the Fiserv developer portal. Not only does that unlock new consumer experiences, he said, but it also adds incremental value for financial institutions, including potential new revenue streams, markets and product offerings.  

"For open banking to work, data and information need to flow freely through the systems controlled by the user and financial institutions," McIninch said. "That enables the outcomes everyone is looking for and helps our clients craft the user experiences they want."