Banks will actively work directly with fintech startups to deliver innovation for their customers, so their legacy systems can converge with new technology, says Adam Nanjee, Head of Financial Technology at MaRS Discovery District in Toronto.
Because of their size, most major banks only see a threat if there is a very large-scale economic impact on them. For startups, this means less competition, and therefore more partnerships are available. By 2019, 25% of retail banks will use startups to replace their legacy systems, says Gartner.
For more on the issues on banks merging brand new systems with their existing processes, watch this interview with Nanjee: