A new digital platform is being developed to help the financial services industry manage its current complex and time-consuming procurement procedures for accessing the offerings of FinTech companies. A group of major research, tech, and financial services companies, including professional services giant, Deloitte, global tech conglomerate, Cisco, and core banking system, Temenos, are partnering to set up the new platform. It will provide due diligence, connectivity, and testing functions to procurement teams in major financial services firms. Called ‘Fin5Lab’, the platform will offer a trusted standard for pre-evaluation of FinTech providers’ services and products, reducing costly and time-consuming steps in the procurement process for financial services companies.
Recent research from Temenos showed that the financial services industry’s procurement process for FinTech offerings can take as long as 18 months, often followed by a further 18 months of technical integration before a FinTech product can go live. As a result, Fintech firms have struggled with cash flow, resource allocation, and growth, while financial services firms have often been placed at a financial disadvantage because of the procurement lag. The new platform will function as a dedicated sandbox, providing a direct connection for FinTech solutions to the Temenos core banking system. Luxemburg-based Telindus will host a regulated and secure environment for the infrastructure, while Deloitte Luxemburg will provide a series of due diligence checks that both financial services and FinTech customers can request.
Temenos’ Chief Strategy Officer, Ben Robinson, said: “This joint certification service greatly boosts our marketplace value proposition by giving clients additional assurance over the curation and integration work we do and as such we hope that it will accelerate the exchange of value between banks and fintechs.”
Procurement pros in these financial institutions will soon need to familiarise themselves with Fin5Lab as well as performing their core duties of category management, tail spend management, strategic sourcing, etc. The time and cost reductions on offer look set to be attractive.