- New ClearBank research reveals fintechs increasingly view agency banks as suppliers rather than strategic partners
- A growing number of fintechs are considering switching provider amid notable decline in satisfaction
- Only 29% of fintechs feel their relationship with an agency bank has helped their business, down from half in 2020
ClearBank, the enabler of real-time clearing and embedded banking for financial institutions, today releases research into the attitudes of fintechs towards agency banks, with worrying implications for long-term relationships.
The report, How well are fintechs served by banks? The state of agency banking across the UK and Europe, asked fintechs across Europe about their relationship with agency banking partners. A mix of large, medium and small fintechs from Lithuania, Germany, the Netherlands, Sweden and the UK were polled, representing a mix of service providers and technology providers. The report updates research carried out by ClearBank in 2020.
The results show a rising indifference to agency banks among fintechs. While the duration of partnerships remains stable—around four years for larger fintechs, around two for smaller—there is a notable decline in satisfaction with agency banking partners.
In the last report, half of fintechs felt that agency banks had helped their business, while a third felt the impact had been neutral. In 2024, those numbers have shifted, with just 29% feeling that the relationship had helped their business, and 61% seeing a neutral impact. For smaller fintechs, this shift was even more pronounced, with 72% reporting a neutral impact on their business. Meanwhile, negative sentiment was essentially static.
This shift comes at a dangerous time for agency banks. 15% of fintechs are looking to change provider, with this rising to 23% for mid-size fintechs. Those who want to switch are planning to do so in the next year, and most who do not plan to switch cite the pain of switching as the reason for staying with their current provider.
Despite it becoming a bigger consideration for fintechs when selecting a partner, there has been a noticeable decline in the quality of service that fintechs feel they are receiving since 2020. Satisfaction with the speed, security, reliability and ease of use provided by agency banks have all fallen in the last four years, particularly among larger fintechs.
At the same time, fintechs do not see their agency banking partners as a trusted partner or someone who challenges their thinking—a perception that puts these partnerships at risk. In particular, more fintechs have become unhappy with their banking partner’s ability to enable innovation in their business.
John Salter, Chief Customer Officer, ClearBank, said: “This report captures a growing chasm forming between fintechs and their agency banks. While agency banking services have been vital in enabling fintech innovations, banks now risk being seen as a mere ‘utility’, in the same way we only really care if our power or water isn’t available and are indifferent when it is. Fintechs don’t want another supplier, they want partners who challenge their thinking— who not only innovate, but help their partners innovate. Those who fail to deliver a high quality of service and technology will find themselves standing on increasingly shaky ground and risk losing out to those who do.”