As banks continue to lean on fintech vendors and partners to upgrade their internal technology and the products and services they offer customers — and as regulators continue to scrutinize these relationships — a cottage industry of sorts has sprung up. New companies like True Digital and Tech Passport help banks vet and conduct due diligence on fintechs.
True Digital lets banks provide detailed reviews of the fintechs they work with as vendors and partners. TechPassport was developed in collaboration with 15 global banks including Morgan Stanley, HSBC, Citi, and Fidelity, to create a set of "enterprise ready" questions start-ups must answer to work with the big banks. Alloy Labs has collaborated with banks to create guidelines and standards for fintech partnerships.
"Fintech partnerships are becoming increasingly more important for banks' innovation strategy," said Sean Manahan, global head of business development and partnerships at Morgan Stanley.
Note: This information was originally shared via American Banker.