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More Bank-Fintech Partnerships Emerge as Groups Embrace Digital

Customers Bank, Capital Bank and Community 1st Credit Union among the latest to embrace financial technology

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  • Written by  Banking Exchange staff
More Bank-Fintech Partnerships Emerge as Groups Embrace Digital

As the importance of online and mobile banking solutions grows, more and more banks and credit unions are partnering with fintech specialists to boost their capacity and target new markets and services.

Customers Bank has announced a partnership with blockchain company Tassat to implement a blockchain-based, business-to-business payments network for its corporate clients.

The US bank will join the TassatPay network in a bid to drive growth and acquire new customers.

“B2B payments have lagged behind consumer payments in innovation, presenting a huge opportunity for digital transformation,” said Sam Sidhu, vice chairman and chief operating officer at Customers Bank.

The TassatPay Network uses blockchain technology to “tokenize” deposits and make secure instant payments, the company said in a statement. The method reduces time spent waiting for settlement while also lowering transaction fees.

Customers ranked among the top providers of Paycheck Protection Program loans over the course of the program, boosted by multiple fintech partnerships and collaborations.

Elsewhere, Maryland-based Capital Bank has made investments into its digital mortgage offering in response to the pandemic.

As customers continue to bank via online or mobile portals rather than branches, Capital Bank has sought to improve the process of accessing home loans remotely. It has developed an end-to-end digital mortgage application process and an online closing option home loan customers.

“Our forward-looking digital strategy really turns the electronic workarounds spurred by the pandemic into a long-term approach that makes everyday life easier, more efficient and more comfortable for customers,” said Capital Bank CEO Edward Barry.

Separately, Community 1st Credit Union has adopted an artificial intelligence-based platform to power its credit decisioning and underwriting capabilities.

The technology is provided by Scienaptic, a specialist in underwriting technologies.

Bill Paulen, the credit union’s CEO, said the partnership would assist in making “quicker and better lending decisions”, as well as help the company expand its lending to solar energy businesses and other renewables, “lowering financing costs in the nationwide residential solar market”.

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