Takeaways From Wolf’s Fintech Mixer: Building Successful Fintech and Financial Institution Partnerships
Digital innovation and transformation are key business initiatives for the financial institution industry. However, bringing fintechs and financial institutions together successfully can be challenging. How can we build out collaborative partnerships that can withstand not only the test of time, but also regulatory scrutiny?
At Wolf’s Fintech Mixer, we brought together industry leaders from fintechs, banks, and credit unions to answer that question. Over drinks and refreshments at Mighty Squirrel Brewery, industry experts led panels and discussions followed by an afternoon of networking.
How to Make Fintech and Financial Institution Partnerships Work
The day was kicked off by a panel on How to Make Fintech and Financial Institution Partnerships Work by Merry Piotti, Jonathan Brito, Marianela Vazquez, David Coonin, and Jay Tuli. The panel discussed what the keys to achieving strategic alignment look like, and common pitfalls that fintechs and financial institutions fall into when attempting to create partnerships.
Major issues facing successful partnerships included a lack of understanding and cooperative growth mindset. Both parties must make compromises and prepare for growth in order to succeed – especially given the risk-averse nature of banks compared to the fast-moving mindset of many fintechs. Patience and planning are paramount.
Above all else, clear communication and strategic preparation were key. Making sure each side of the partnership feels secure with a thorough, comprehensive plan in place covering key steps was the focus.
I think the most important observation we’ve had in partnerships is really understanding why we’re doing it, what we’re trying to achieve from this partnership, and who is responsible for making this happen.
Jay Tuli
President
Leader Bank
Balancing Innovation and Risk
Next, Wolf’s Ryan Rodrigue and FiVerity’s Greg Woolf spoke on Balancing Innovation and Risk. The two touched on the current state of risk in the fintech and financial institution industries, and what they look like from both perspectives.
Greg and Ryan also discussed common obstacles to effective risk management on both sides and went on to discuss what bad actors behave like in the current climate. Risk management is often impeded by a race to be first to the market, competition to obtain and retain customers, and a lack of understanding and communication between financial institutions and fintechs.
They pointed out that a single small and seemingly insignificant event or action can have far-reaching consequences over time – especially due to the interconnected nature of each dimension of risk.
Currently, Wolf and FiVerity are collaborating on an anonymized information sharing system to help mitigate fraudulent activity between financial institutions.
Innovation by its nature requires taking a chance, taking risk, how do we mitigate that?
Ryan Rodrigue
Principal
Wolf & Company, P.C
The Whimsical World of Business Email Compromise
Before everyone got together for networking and some beers, Wolf’s Joe Sarkisian discussed the growing threat of business email compromise. Joe explained that 71% of cyberattacks in 2022 were malware-less, relying on other methods of compromise.
Business email compromise is an increasingly popular method right now, as malware detection abilities have grown, and social engineering is coming back to the forefront. Joe explained what the various methodologies of compromise might look like, and how we can better prepare ourselves to protect against them.
The average breakout time for interactive intrusion in 2022 was 84 minutes. 84 minutes to find something of value, plant malware in it, set off a payload somewhere, find a server with customer data, etc. 84 minutes total to find some gold and ruin your day.
Joe Sarkisian
Lead Penetration Tester
Wolf & Company, P.C.
We wrapped up the afternoon with delicious brews, collaboration, and networking. It was exciting to see everyone come together at Mighty Squirrel to explore how fintechs and financial institutions can flourish together!
If you’re looking to continue networking, learning, and innovating, check out our Technology Leadership Conference happening this October!
