Viewpoints heart Banking Partnerships

Future-proof banking — why partnerships fuel digital growth.

As banks modernize, aligning customer experience with core brand values is key to building trust and driving growth.

Strategic partnerships between traditional banking institutions and fintech companies have become far more common — in some cases, essential. These collaborations modernize services, expand market reach and enhance competitiveness by combining the trust and stability of established banks with the agility and innovation of modern, digital-first businesses.

Types of partnerships

Understanding the various models of bank-fintech partnerships is crucial for identifying the best approach to collaboration for your institution.

  1. Referral partnership. The least direct relationship, this model has banks referring their customers to preferred fintech companies to supplement services the bank does not offer. This model allows banks to somewhat enhance their service offerings without significant investment in new technologies.
  2. Fintech as a vendor. Here, fintech companies act as technology providers, delivering specific functions to banks. This relationship positions fintechs as vendors supplying necessary technological solutions to enhance the bank's existing infrastructure and the relationship may or may not be fully disclosed to the bank’s customers.

Santander + Ripple


Ripple, a fintech specializing in blockchain technology partners with Santander to launch One Pay FX service.

Santander is able to leverage Ripple’s platform for faster, more transparent cross-border payments, enhancing customer satisfaction and efficiency.

  • Faster international payments
  • Improved customer experience

For Ripple, partnering with a major bank player like Santander provided validation and a pathway to scale its innovative solutions.

  • Gave brand legitimacy
  • Ability to scale blockchain platform
  1. Embedded banking. Embedded banking, or banking-as-a-service (BaaS), integrates financial services into non-financial platforms, creating a seamless user experience. It enables access to payments, savings and loans without traditional banking channels. By embedding these services into shopping apps, social media and e-commerce sites, it enhances convenience, reduces friction and improves customer engagement.

Amazon + JPMorgan Chase


This partnership embeds JPMorgan’s financial services seamlessly into Amazon’s platform.

Amazon enhances its value proposition by providing a more comprehensive and convenient shopping experience without the need for a banking license.

  • Embedded banking services
  • Improved customer experience

For JPMorgan Chase, this partnership expands its reach into the customer base of Amazon, reinforcing its position in the digital payments ecosystem.

  • New customer growth
  • Strength as a market leader
  1. Private label/white label. In this model, banks offer fintech capabilities under their own branding. They create or customize fintech products to align with their brand identity, providing a seamless experience for customers while leveraging fintech services and innovations.
  2. Hybrid bank-fintech partnership. This approach includes direct investments, acquisitions, outsourcing services or co-developing services such as lending and account issuance. It represents a more integrated collaboration, combining resources and expertise from each party to innovate and expand offerings on an ongoing basis.
Considerations for successful partnerships

To build a strong and effective bank-fintech partnership, several factors should be considered. Some of the primary ones are here —

  • Regulatory compliance. Both parties must clearly understand and adhere to financial regulations to maintain trust and avoid legal risks.
  • Technological compatibility. A thorough assessment of existing tools and systems, along with seamless integration planning, is crucial for operational efficiency and a smooth customer experience.
  • Leveraging core strengths. Defining each partner’s strengths and contributions fosters effective collaboration and maximizes the value of the partnership.
  • Clear objectives & metrics. Establishing well-defined roles, goals and success metrics ensures alignment and measurable progress.
  • Commitment to innovation. A successful partnership should embrace continuous innovation, evolving alongside technological advancements to stay competitive and relevant.
The takeaway.

Strategic partnerships between banks and digital-forward players help drive innovation, modern customer experiences and new product and service options. Choosing the right partner, model and success factors can transform collaboration into a growth engine — a competitive edge for financial institutions and technology companies alike.

Interested in exploring beneficial partnership ideas and models that can benefit your institution? Lovely People can help. Let’s talk.