In the past year, we saw a rise in partnerships between financial service providers and fintech companies in their efforts to become a “one-stop shop” for their customers. In 2023, financial service providers will continue to partner with — and in some cases, acquire — fintech companies, not only to expand their value proposition for consumers but also to help offset the decrease in demand for some of the more traditional financial products (eg, cash-out refinances, loans, etc.) due to the current interest rates.
Additionally, many consumers strengthened their financial literacy during the pandemic. As they pay more attention to their finances amid rising inflation, consumers are doing more research, asking more informed questions, and thoughtfully weighing their options before making major financial decisions. Thus, fintech companies can gain consumers’ trust by increasing transparency, proactively addressing questions about their products and services, and becoming better educational resources. ~ Jonathan MacKinnon, VP of Business Development & Product Strategy at Hometap.
This article originally appeared on Payments Next. Read the full article here.