NEWS
NEWS
FinTech ’ s growing indifference to agency banks highlights rifts in long-term relationships
ClearBank , the enabler of real-time clearing and embedded banking for financial institutions , has released research into the attitudes of FinTechs towards agency banks , with worrying implications for long-term relationships .
The report , ‘ How well are FinTechs served by banks ? The state of agency banking across the UK and Europe ’, asked FinTechs across Europe about their relationship with agency banking partners .
The results show a rising indifference to agency banks among FinTechs . While the duration of partnerships remains stable – around four years for larger FinTechs , around two for the smaller – there is a notable decline in satisfaction with agency banking partners . In the last report , half of FinTechs felt that agency banks had helped their business , while a third felt the impact had been neutral . In
2024 , those numbers have shifted , with just 29 % feeling that the relationship had helped their business , and 61 % seeing a neutral impact . For smaller FinTechs , this shift was even more pronounced , with 72 % reporting a neutral impact on their business . Meanwhile , negative sentiment was essentially static .
This shift comes at a dangerous time for agency banks , with 15 % of FinTechs looking to change provider , with this rising to 23 % for mid-size FinTechs . Those who want to switch are planning to do so in the next year , and most who do not plan to switch cite the pain of switching as the reason for staying with their current provider .
Despite it becoming a bigger consideration for FinTechs when selecting a partner , there has been a noticeable decline in the quality of service that FinTechs feel they are receiving since 2020 . Satisfaction with the speed , security , reliability and ease of use provided by agency banks have all fallen in the last four years , particularly among larger FinTechs .
At the same time , FinTechs do not see their agency banking partners as a trusted partner or someone who challenges their thinking – a perception that puts these partnerships at risk . In particular , more FinTechs have become unhappy with their banking partner ’ s ability to enable innovation in their business .
PayPal introduces PayPal Complete Payments in China
PayPal unveiled PayPal Complete Payments , a safe and efficient all-in-one platform that integrates a range of customised products and solutions to support Chinese merchants in selling globally . This platform streamlines payment and receivables processes for businesses of all sizes in China , empowering them to thrive in cross-border trade and the digital economy .
PayPal ’ s global and China management teams engaged with over 700 merchants from across the country along with partners . They provided insights into PayPal ’ s global and local business strategies , cross-border payment solutions , industry trends and specific initiatives designed to drive business growth for Chinese merchants .
Suzan Kereere , President , Global Markets , PayPal , said : “ We are excited to bring PayPal ’ s Complete Payments solution to China , empowering businesses with secure , seamless crossborder transactions and helping them tap into global markets . This launch marks a significant milestone in PayPal ’ s mission to revolutionise commerce globally , bridging Chinese businesses with consumers around the world in a more efficient and transparent way .”
Hannah Qiu , Senior Vice President , China CEO , PayPal , said : “ As of date , PayPal has facilitated the global expansion of many
Chinese businesses . With PayPal ’ s unique two-sided network and technological advantages , we will continue to enhance and optimise the system and product capabilities of PayPal China , empowering Chinese merchants to expand business globally through more diversified cross-border payment solutions .”
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