Game Changing Technology: The Impact of FinTech on Banks

Financial Technology and Data

Sam Sweet

Jul 29, 2019

For three consecutive years, the “B2B Payments Survey Report” has provided instrumental insights and actionable advice regarding the current landscape of business payments. This year, Bottomline Technologies and Strategic Treasurer have delivered yet again, creating a survey report that captures and analyzes data from more than 300 practitioners of different company sizes, industries, and locations. The 2019 B2B Payments Survey Report reveals the growing impact of fintech on banks, and focuses on how corporates and banks are driving payments growth by partnering with fintechs for more advanced payment solutions.

Corporate Adoption of FinTech Payment Solutions

In the complex landscape of B2B payments, it can be difficult for organizations to navigate the various options of payment solutions that are available. Over the past several years, the payments sphere has seen a significant increase in corporates partnering with fintech providers for more advanced and proactive payment solutions. In 2017, less than 1 in 5 corporates were using non-bank payment solutions compared to the 28% of corporates who are currently using fintech providers.

Looking ahead, 42% of corporates believe that fintech providers are more nimble than banks, 37% believe that fintechs can offer a greater degree of payments functionalities, and 32% plan to increase their use of fintech payment solutions over the next 1-3 years. As fintech partnerships continue to grow among the top priorities in payments for both corporates and banks, don’t let your organization get left behind in the new age of B2B payments.

The Impact of FinTech on Banks


Banks are also now partnering with fintechs in a significant way in order to help drive innovation and enhancements across their offerings. This year’s B2B payments survey report revealed that 76% of banks indicated that they leverage fintech solutions either across their entire portfolios or for niche capabilities that target specific customer segments. The recent spike in fintech and banking collaboration is reflected by the 70% of corporates that prefer an integrated or single technology solution for all of their payment needs. This encourages banks to develop partnerships with fintechs to deliver integrated, white-labeled solutions as a part of a single, comprehensive offering for their clients.

API: The Game Changer

With the introduction of regulations like PSD2 that emphasize the standardization of APIs in order to facilitate easier communication across various operating systems, fintechs are now developing applications that integrate seamlessly with one another and with bank systems to send data in a more enriched and efficient fashion than what is currently available.

Both banks and corporates agree that APIs (application programming interfaces) are a game changer in the B2B payments landscape. When asked to rank the technologies or services that will be the most impactful in the next 2-3 years, both corporates and banks overwhelmingly ranked APIs above other innovations including mobile banking apps, artificial intelligence (AI) & machine learning, robotic process automation (RPA), and blockchain.

Fintech Partnerships Drive Bank & Corporate B2B Growth

Expanding the use of fintech payment solutions is beneficial to fintechs, banks, and corporates alike. Fintechs benefit from their solutions being incorporated into banks’ payments offerings, driving greater market adoption. Banks benefit from the ability to deliver cutting-edge and unique payment capabilities that address the needs of customers in a more nimble way than ever before. Finally, corporates benefit by continuing the relationship with their trusted bank partner while leveraging fintech capabilities often behind the scenes.

To find out more about the impact of fintech on banks and how your organization can benefit from new innovations, download the full 2020 B2B Payments Survey Report.

And for even more insights into the payments industry and beyond, subscribe now and stay up-to-date on the latest trends and topics.

Follow these links to see the other posts in this series:

Payment Industry Trends, Part 1

How Emerging Payments Are Gaining Speed, Part 3

Posted by

Sam Sweet

Sam Sweet is a featured SmartPayments contributor who brings a global perspective to his writing. He is currently studying communications at Denison University and interning at a fast-paced, multi-faceted marketing department at a leading fintech organization specializing in global payments, banking solutions and fraud prevention platforms.
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