PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Why Outsourcing Can Leave a Lasting Mark on the US Banking Industry

By Kyle Ferguson
March 23, 2018
in Industry Opinions
0
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
outsource

outsource

Research has discovered that nearly two thirds (64%) of US commercial banks cannot develop fintech applications because of working with legacy systems.

However, while these systems are hindering some commercial banks, they must find a way of negotiating this issue to avoid missing out on opportunities and falling behind their competitors.

The in-depth study also revealed that fintech firms are preparing for a healthy future in the US, with 82% of 100 commercial banks planning to increase fintech investment over the next few years. While these findings help to paint a promising picture of the current trends in the fintech marketplace, it is also important that banks take steps to ensure that their fintech partnerships are built to last, rather than just providing a short-term solution.

Firstly, it is important to understand exactly what factors are driving this growing fintech influence. As nimble and dynamic fintech firms continue to remain at the forefront of technological development in areas such as commercial card payments, banks appear to be slightly behind. While respondents listed legacy systems as the most common barrier preventing their banks from developing in house applications, not having access to technical expertise (56%) and resources (53%) were also noted as limiting factors.

While these elements could be restricting progress, fintech firms are able to provide banks with an effective solution to navigate these barriers through outsourcing selected services.

Outsourcing services to established fintech firms can, in some instances, help products to be brought to market faster and aid banks to understand the challenges of local markets, providing effective solutions for its customers. They can enable commercial banks to sidestep agility issues often associated with legacy systems while also reducing their internal development costs.

It is also crucial for a bank to make the correct choice when opting to outsource. Banks should not feel threatened by technology, working with a fintech partner can help provide the customer with a better service, which can ultimately help build a lasting relationship. Again, when these partnerships are successfully built, it enables the bank to provide a better range of relevant services to its customers while providing a new business opportunity for the fintech.

The industry has seen these types of partnerships proving successful in the US, with only 22% of US banks revealing that they do not currently outsource any payment services, in comparison to 30% of their UK counterparts.

Demonstrating results in banking technology is often reliant on selecting an appropriate path into the future. When partnering with a trusted and knowledgeable fintech provide to outsource its services, it will enable them to follow a clear path.

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: FraedomOutsourcing

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    payment api

    Open Banking Has Made Payment APIs a Burgeoning Revenue Stream

    June 12, 2026
    payment card innovation

    Serving a Segment of One: The Race to Stay Top of Wallet

    June 11, 2026
    healthcare payments

    The Healthcare Payments Industry Has a Perception Problem

    June 10, 2026
    continuous KYC

    The Future of KYC Is Layered—and Data-Driven

    June 9, 2026
    tokenized deposits

    As Crypto Challengers Emerge, Banks Turn to Tokenized Deposits

    June 8, 2026
    physical digital debit

    Whether Physical or Digital, Debit Cards Are a Payments Mainstay

    June 5, 2026
    agentic commerce

    Separating Hype from Reality in Emerging Payment Trends

    June 4, 2026
    agentic commerce

    Searching for Trust in Agentic Commerce

    June 3, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result