Zopa Bank joins TechPassport fintech think tank
Zopa Bank is among 15 global banks to have partnered with fintech software company TechPassport to launch the first marketplace of enterprise-ready fintechs this month.
The think tank has developed a set of Enterprise Ready Questions (ERQs), or standards, by which large banks can judge whether fintechs are suitable to work with them and other financial institutions.
This is the first time a group of banks have worked together to create an industry standard set of questions that they all adhere to.
According to TechPassport, as part of the think tank, Zopa Bank pointed out that while each bank has a different risk lens, many of the criteria needed to work with a fintech are the same.
It acknowledged that there has not been an attempt to standardise these onboarding questions before now and that this collaboration makes it easier for banks to access enterprise ready start-ups and for fintechs to understand what they need to do to be enterprise ready.
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The idea is to foster transparency and clarity for both parties to be able to collaborate better and enable faster fintech onboarding.
Traditionally, it can take up to 18 months for a fintech to be fully integrated into a bank or financial institution, posing a major barrier to innovation.
TechPassport already has a track record of reducing the time taken to put non-disclosure agreements (NDAs) and proof-of-concepts in place from six weeks down to 24 hours for its tier one banking clients.
“Partnerships with early-stage companies are a key part of our strategy to drive new opportunities for our clients and business”, said Morgan Stanley global head of business development and partnerships Sean Manahan.
“With this cross-industry initiative, we have created a platform that sets the foundation for a productive partnership between fintechs and financial service organisations. It unlocks fintechs’ innovation potential by empowering them to focus on impactful contributions and deliver value faster.”
The standardised questions will mean fintechs will not need to spend as much time and effort preparing for onboarding, while banks and financial institutions will be able to assess the readiness of a fintech for integration faster. The new system also enables banks to deliver on the UK government backed fintech pledge.
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“Having worked in the banking industry for large global banks such as HSBC, Deutsche Bank and Lloyds, I knew there must be a better way, a way we could save time and money and most importantly work in partnership with fintech’s to help them succeed by removing friction and barriers to entry”, said TechPassport founder and chief executive Layla White.
“That’s when I came up with TechPassport. When I started to speak to other industry leaders, I found I was not alone in having this vision and so the Banking Think Tanks were created. We started with three tier one banks six months ago and now have 15 at the table who have helped shape and create these ERQs that will drive innovation forward for the entire industry.”
TechPassport are a member of the Citi Bank Accelerator program.
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