Why banks are slow to adopt new technologies
Why growing businesses don’t switch to tech-savvy banks
If a business banks with an institution that hasn’t embraced technology, why don’t they switch? Some are thinking about it (22%). The rest may view switching banks as a hassle — or a risk:
- Switching is work. From credit re-evaluations to re-integrating software and transferring transactions, the onus of switching is on already time-strapped business owners, accountants, and bookkeepers.
- Switching is costly. Banks charge fees when businesses close accounts — and open new ones. Plus, switching may disrupt cash flow and lines of credit.
- Switching is not just business. It's personal. Finance teams spend years building relationships with bankers they trust to know their finances inside out.
Banks are partnering with fintech companies to accelerate innovation
Why payment automation partnerships are a priority
To fast-track innovation, bank on fintech partnerships
Conservative and risk-averse, North American banks are notoriously slow to adopt new technologies. But now, fintech partnerships make it easy for them to innovate around legacy software and internal inertia.