Why go into strategic partnerships?
Blogs on 23rd March 2020
Original blog can be found here!
Auke Veenstra, Senior Director EMEA
As a lender, whether you’re a financial institution or alternative finance organisation, working with an effective technology partner is important for your continued growth. In particular, the right partners will allow you to focus efforts and help you remain competitive and be recognised as a leader in today’s increasingly competitive world. Leaders in the lending world acknowledge that building smart customer journeys can be done faster with the right partnerships in place.
The role of the Fintechs
Fintechs claim that they have the better technology and user experience. Sometimes this is true but remember that many of them once started on their own bespoke (Excel) technology stack. But, what most of them have in common is that they solve a friction point in the customer journey. For example, Revolut did this with exchange rates in payments. With so many new technologies and service providers available in the market, lenders are having to rethink how they can rebuild their customer experience leveraging these solutions and benefit from them. More and more lenders can see the power of partnerships.
Exploring different partnership models with different vendors and fintechs will help lenders evolve as businesses, create operational efficiencies, and build sustainable impact. Through partnerships, lenders can approach growth and innovation in a highly strategic and much more open manner. But, by far the most important reason to apply partnerships in a lender’s business model is speed. Only organisations that can adapt in a fast way will be the winners of tomorrow. Speed to adapt and speed to market is a lender’s only true competitor in this data-driven time.
What is at the core of a successful strategic partnership?
Cloud Lending believes a successful partnership depends on several factors. Here are some of the most important ones in our opinion:
- Open and transparent communication and trust.
- Aligned business objectives and cultural goals.
- Don’t look to customise partner collaborations, focus on configurable solutions to achieve what you need.
- Bring out early versions of the common solution for beta testing for learning purposes.
These considerations will be evident in an organisation firmly convinced that transparency and honesty is the best policy. If honest, trust is built, strategic challenges can be met, and the partnership creates real added value for the customer.
About Q2 Cloud Lending
Cloud Lending provides a modular, highly configurable end-to-end lending platform for our customers. We work in close collaboration and partnership with all our customers globally, we take the time to understand the unique needs of each customer, and we design great customer journeys together with the best fintechs in class.
I’d be delighted to talk you about how Cloud Lending can help you grow your lending business – please get in touch with any questions.