Which fintech companies are striking deals with Asian banks?

Find out what StanChart, Citi, and TEB are doing around fintechs.

The dogged rivalry between banks and fintech firms seems to be losing steam in favor of a flourishing friendship. As fintech investment in Asia reached a new high of US$2.6b in the first quarter of 2016, analysts attribute the surge to elevated levels of mutual attraction as banks choose to collaborate rather than compete with fintech firms. 

Earlier this year, Standard Chartered Private Equity and Goldman Sachs invested US$28m in Vietnam-based fintech startup Momo, which is an e-wallet and payments app that allows users to pay online and transfer money to each other digitally. “In Hong Kong, we have launched the SuperCharger FinTech Accelerator Programme, in partnership with Baidu and TusPark Global Network, with the aim of helping fintech companies grow in Asia,” notes Chris de Bruin, global head of retail products and digital for Standard Chartered.

Meanwhile, Citi created a new unit called Citi FinTech, which leads the bank’s collaboration with fintech startups through the Citi Mobile Challenge, a hackathon series scouring the world for ideas to incorporate into Citi’s mobile banking apps. “Since its inception just over 18 months ago, the Citi Mobile Challenge has visited four continents, including Asia. The program has attracted entries from over 6,500 innovators,” adds Felimy Greene, Citi’s MD and regional head of customer franchise. 

Turkish Economy Bank is also collaborating with local fintech firm Metamorfoz for the integration of contactless payment services. “The reality is the banks generally have three options when it comes to fintech: build their own proprietary technology, acquire a relevant fintech company in order to gain access to their technology, or partner with a fintech company to identify and achieve synergies,” according to a report by KPMG.

For fintech firms that choose to compete with banks head on, their digital expertise and advanced technology have helped them carve out a niche, but it is a stretch to think that fintech will be able to completely displace banks, says Moody’s.