Fintech Integration Process Suggestion for Banks

• Published in: Procedia computer science 2019, Vol.158, p.971-978
• Main Authors: Acar, Okan, Çıtak, Yusuf Ensar
• Format: Article
• Language: English
• Subjects: Banks; Fintech; Fintech integration
• ISSN: 1877-0509; 1877-0509
• DOI: 10.1016/j.procs.2019.09.138

Although fintech subject has been highly discussed by the financial institutions in all around the world, there are only a few studies on how banks should draw a framework for fintech integration. In this research, we are aiming to draw a framework by using business experience in Kuveyt Türk Participation Bank in Turkey to give guidance to other financial institutions in Fintech Integration Process. This study contains entire fintech Integration Process from revealing the needs of the internal departments to the completion of fintech integration. We divided Fintech Integration Process into seven phases. First phase, collecting needs of internal departments. Second phase consist of scouting relevant fintechs around the world by using databases and online platforms. Third phase, fintech makes presentation for introduction and explains its business model. At the end of this meeting, relevant bank employees evaluate the presentation and decide whether to invite fintech again for Business Committee or not. Fourth phase, fintech enters Business Committee to make presentation for Vice Presidents of the relevant departments. Fifth phase, fintech meets with IT, compliance and legal departments to discuss and solve problems. In sixth phase, senior management makes decision to start POC (Proof of Concept) process. Lastly, in seventh phase, fintech integration comes alive for the customer use. All these phases are constructed to mitigate risks and increase awareness of fintechs in the departments. In this way, most of the departments get in touch with fintechs and understand the importance of external collaboration.