As legacy banks build competitive arsenals against digital-only challengers, partnerships are the way forward.

Deloitte and Finxact, a Jacksonville, Fl.-based core banking provider, are working together to help banks create and integrate new digital products for customers, the companies confirmed this week.

According to Frank Sanchez, Finxact’s CEO, the tie-up will enable banks to create behavioral products that will help customers make better decisions. It will also help them modernize user experiences.

“Deloitte is providing services and integration capabilities to help banks establish brand identities in the digital space and help identify the types of banking services that make sense for the demographics they’re trying to reach,” he said. The types of users these banks are aiming for are millennials and Gen Z customers.

As banks work to improve and streamline user experiences, they are increasingly turning to third parties like Finxact to help build and grow their product suites. Many traditional banks with legacy core systems and older business models do not have the operational flexibility to consistently deliver new products, putting them at a disadvantage to challenger banks.  Finxact is competing with traditional core banking providers with an open system that runs on Amazon’s cloud.

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Using Finxact’s API, a bank and third party companies can plug into a combined ecosystem and integrate any apps a bank has created along with other digital capabilities delivered by partners. By working with Deloitte and Finxact, banks can now test products and systems within days, instead of weeks or months, according to Sanchez. This will allow banks to easily roll out new products and collect feedback from customers.

Finxact would not comment on the banks it is working with through the new partnership, but Sanchez said some clients are well-known entities. “We’re providing the support to [help banks] move forward through the competitive landscape.”  Sanchez said. 

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