As banks and credit unions look to streamline operations and improve customer experiences, partnerships between financial institutions and financial technology (fintech) companies continue to rise. Such collaboration can drive profitability and offer tremendous overall value, but it does come with risk.
That is why, as financial institutions begin to evaluate their technology budgets for 2024, concern about data security is taking a front seat, according to experts.
Risk management company Ncontracts conducted a survey of 147 bank and credit union professionals in order to evaluate how financial institutions are navigating today’s risk and compliance challenges.
The research team learned that 72% of banks and credit unions prioritize compliance above all else when evaluating fintechs.
That is followed closely by Cybersecurity (62%), return-on-investment (46.3%), and reputation (44.4%).
“You can’t underestimate the importance of a fintech partner’s compliance posture,” said Rafael DeLeon, Ncontracts’ SVP of Industry Engagement and a former bank examiner with the…