Traditional banks are failing to keep up with challenger banks and neo-banks in terms of innovation and customer-relevant services, despite their advantages in available capital, technology experience, and data volumes. Research by PA Consulting shows that 67% of banking and technology leaders believe traditional banks risk losing market share if they do not adapt to fintech innovations. The rise of technologies such as DeFi payment, automation, and AI-led banking operations may leave traditional banks as legacy pieces of financial market infrastructure by 2030, if they do not effectively adopt new technologies developed by fintechs.
One area where fintech is making significant strides in traditional banking is compliance services. ComplyControl, a UK-based provider of AI-powered services founded by Roman Eloshvili, offers a more cost-effective alternative for banks to automate sanctions compliance and simplify financial risk management. By using AI to check banking transactions against sanction lists, ComplyControl helps detect fraud, prevent money laundering, and stop sophisticated scams. This solution is faster, more accurate, and cheaper than traditional compliance services, saving banks money and providing support to smaller market players lacking extensive compliance resources.
Data platforms like TipRanks are also helping traditional banks make data-driven investment decisions. Founded by Uri Gruenbaum, TipRanks provides a financial accountability engine and interactive research tools that help users, including major financial institutions like Morgan Stanley and Santander, make informed investment decisions. Since its integration with Bank Hapoalim in Israel in 2013, TipRanks has expanded its partnerships with other financial institutions, improving user retention and engagement metrics. In 2021, TipRanks became part of the Prytek technology group.
Another area where fintech is transforming traditional banking is in finding forgotten bank accounts. Gretel, a UK-based fintech founded by CEO Duncan Stevens, helps customers find lost and forgotten bank accounts in the UK, addressing a neglected sector of banking. With the number of lost and dormant accounts in the UK reaching 28 million, representing an estimated £89 billion in lost savings and investments, Gretel’s platform simplifies the process of tracking and reclaiming these assets. Partnering with financial companies, Gretel’s tech is being used by traditional banks to transform asset reunification and support customer financial well-being.
The banking industry is facing legacy issues, including deteriorating data quality and the aftermath of numerous mergers and brand changes since 1980. The rise in lost and dormant accounts in the UK highlights the need for innovative solutions like Gretel to help customers reclaim their assets. By digitizing the process of finding forgotten bank accounts, Gretel’s platform streamlines a task that could take up to three months into a three-minute search, providing a scalable automated solution that covers all products and services provided by the bank. Feedback from financial companies working with Gretel shows a significant positive impact, with many firms opting to increase the scope of Gretel’s service for their customers.
These partnerships with traditional banks demonstrate the value of fintech solutions in transforming asset reunification and supporting customer financial well-being. By leveraging technologies such as AI, data platforms, and automated solutions, fintech companies are helping traditional banks stay competitive in a rapidly changing financial landscape. As the banking industry continues to evolve, cooperation between traditional banks and fintech innovators will be crucial for driving future growth and success.
