Big Banks Using Matchi to Connect with Fintech Companies
As the financial technology industry heats up, many see the sector as a potential threat to traditional banking institutions.
Fintech startups have been dubbed “disruptors” because they use new and innovative digital solutions and now swallow up a hefty piece of the financial services market.
Rather than fighting against the trend, traditional financial institutions are now embracing fintech companies.
A global online “matchmaking” service named Matchi has emerged as a meeting place for traditional banks and fintech companies. David Milligan, the CEO of Matchi, said it has an internationally integrated network of resources to connect companies with “innovators” based on select criteria.
Matchi’s service screens eligible fintech companies that are established within the industry and presents them to clients through their web platform. Any company can search Matchi’s databases using their own select criteria. Matchi will receive a percentage of any transaction or deal made through the website.
Banks such as Barclays, AIB and Standard Bank have already signed up as sponsors, giving them early access to Matchi’s services. Fintech companies have an easier time integrating globally because they can use innovative technology to avoid the hurdles that traditional banks face.
Evans Munyuki, head of the digital, retail and business department at Barclays Africa Group, said the bank is using Matchi’s unique access to fintech companies to create three pilot programs. Accountancy firm KPMG has also made a deal with Matchi to lead its clients to the platform while also providing consults and support. Ian Pollari, one of the partners of KPMG, said traditional banks need to adapt to new technology in the market by pairing up with fintech companies.