Insight to All Things Currency and Treasury Management

As addressed by FiREapps CEO Wolfgang Koester in a recent article on Fintech Futures, technology integration has continued to help banks evolve to better serve consumers, yet many banks today worry that fintech innovations could drive consumers away from traditional financial institutions and decrease their profit margins.

This fear, however, is simply that and a strategic alliance between the two can help banks differentiate themselves from the competition and establish them as an early adopter of new, automated technologies that can lead to growth and new business opportunities.

Historical Technology Innovation in the Banking Industry

Some technologies – like automated teller machines (ATM), the Reuters terminal, chip and pin debit and credit cards, and even newer technology like Apple Pay – were originally seen as threats to financial institutions but are now part of the everyday banking experience.

The one thing they all have in common is that they are disruptive technological advancements that at one time or another were viewed as trying to drive business away from traditional banking practices. However, after widespread adoption, they actually expanded the reach of banks – providing 24/7 banking services that extended bank business outside of regular branch hours, transparency into pricing that made consumers feel more comfortable hedging, and increased volume of credit transactions made with the access that digital wallets like Apple Pay provide.

Better for the Consumer, Better for the Bank

Like other technologies that were originally thought to have negative impacts on financial institutions, modern-day relationships between banks and fintech companies can actually strengthen customer relationships instead of usurping them.

As was the case with Apply Pay, by integrating fintech solutions into everyday banking for businesses or the general public a financial institution may suffer profit margin losses in one area, but those losses can be reconciled and even increased in another with the help of financial technologies.

Embracing the positive industry disruption presented by fintech companies can help strengthen customer relationships and address inefficiencies to further position banks to succeed in a digital marketplace.

To learn what factors should be considered when choosing a fintech partner and how ATMs, digital wallets and other technologies positively impacted modern banking, read the full article at

FiREapps has continually worked with financial institutions to provide cutting-edge financial technologies to business consumers. Find out how our strategic alliances can benefit you.


Contact FiREapps to Learn more about FiREappsBI