Why partnerships in fintech are building the industry

Partnerships in any industry can be the key to producing the highest quality results most efficiently. Fintech is no different in this regard. Each company specializes in its own niche and can bring its expertise and unique experience to the collective project which makes itself irreplaceable. But the moment each brand decides to take care of all aspects of the project without external support – it immediately loses due to insufficient competence and expertise.

It’s a win-win

First and foremost, two or more companies working together will benefit from using each other’s products, which they would not be able to produce with this standard alone. They can also reduce production costs, increase sales and, most importantly, create the most effective product for customers and thus retain existing and acquire new customers. Obviously, partnerships require constant commitment between the parties. If, on the one hand, communication is neglected or the partners do not engage equally, it is very likely that the trust between them will not be fully developed and the product will not achieve its full potential.

Build credibility and reduce development costs

Partnerships with established financial institutions can help many fintech companies gain credibility and legitimacy in the eyes of their current and potential consumers, as well as other stakeholders. This can be particularly important for fintech companies that operate in heavily regulated industries, such as banking and insurance. Additionally, since building new technology from scratch can be expensive and time-consuming, by joining forces with others, each fintech company can share development costs and repackage or package products and services more efficiently, effectively saving budget for other priorities.

One partnership takes on the other

If you team up with one partner and your collaboration becomes a fruitful experience with positive results, there is a good chance that you will be introduced to the partners of their partners! It works in the same way as networking. You expand your chain network by building relationships with different people, and in the case of fintech, it is mostly with the suppliers, aggregator suppliers and innovators, etc. Knowing many of them will enable you to diversify your partners depending on the project you work with and choose the most suitable one.

Your client gets the best possible product

Each company specializes in its niche, such as payments or lending, and usually does not have expertise in other areas. By partnering with other fintech companies, you can gain access to new technology and expertise that can help you improve your products and services. In addition, you can improve your own product offerings and offer more comprehensive solutions to your customers. For example, a payment processing company may partner with a fraud prevention firm to offer a more secure payment solution. In early 2022, AAZZUR partnered with leading embedded financial experience platform Rails in an innovative ‘Front-end-as-a-Service’ offering for DACH (German, Austrian, Swiss) customers.

While Rails provided regulatory and technical expertise via its payment infrastructure for account and card management, AAZZUR in turn offered front-end layers, integration and value-added financial products to DACH customers of both companies looking to move into BaaS and embedded finance. or even build their challenger bank. The partnership with Rails enabled AAZZUR to increase the number of compliance-ready core banking products while becoming the front-end BaaS provider for a large number of Rail’s DACH customers.