With fintech growing all around the world, there is a debate as to whether fintech giants and financial institutions should compete against each other or work together. Visa is one of the companies that has decided that they want to work together with fintechs.
In June 2021, Visa expanded its Visa Fintech Partner Connect program. This is a program designed to help clients get connected with the world of virtual payments and online banking platforms. Senior vice president and global head of fintech at Visa, Terry Angelos says that “The Fintech Connect program is about both helping to identify and curate interesting fintech companies and then create a favorable commercial partnership for our clients so they can engage with these Fintech Connect partners,” Angelos said.
The program launched in Europe in November of 2020. It is available in the US, Asia Pacific, Latin America, Europe, the Middle East, and Africa. Ever since it was created, Visa has discovered around 60 partners that offer a range of fintechs that can help banks and financial institutions that are clients of Visa. Some of these partners include Allow, Argyle, Canopy, Fidel, FirstSource, Hummingbird, Jumio, Travel Bank, and Unit21.
Visa clients use the Visa Partner website to get in touch with their program partners to receive benefits including pricing discounts and reduced implementation fees.
Terry Angelos, helps us understand the drive behind expanding this program: “Global fintech investment last year was $105 billion,” Angelos said. “There were about 2,861 deals in venture, PE and M&A. So literally over $100 billion is going into fintech, which is more than the combined tech budgets of every bank in the U.S. As a result, a lot of innovation that is occurring in fintech is funded by venture dollars. We’re trying to bring that innovation to our clients, whether they are banks, processors, or other fintechs.”
Fintel Connect, a performance marketing company dedicated to servicing financial services and fintech space, has announced that they will be partnering with Visa to help expand the Fintech Partner Connect program. Founder and CEO of Fintel Connect, Nicky Senyard, states that “Partnership is at the core of what we do, and Visa’s Fintech Partner Connect program expands our reach and enables us to support Visa’s clients and partners in achieving next-level customer growth.”
With the help of Fintel Connect, this Partner Connect Program will be able to increase its reach way further than it could before. The question in regards to why Visa is so interested in expanding this program in particular that still stands is: Is Visa really just trying to create more opportunities for their clients or is there an ulterior motive to gain more accounts?