ClearBank has revealed troubling findings in its latest report, “How well are fintechs served by banks? The state of agency banking across the UK and Europe.”
The research, which surveyed fintechs from various European countries including the UK, Germany, and Lithuania, paints a worrying picture for agency banks, with fintechs showing increasing indifference and dissatisfaction towards their banking partners.
The report, an update to similar research conducted in 2020, highlights a shift in fintechs’ perceptions of agency banks.
While fintech partnerships with banks have remained relatively stable in terms of duration – four years for larger fintechs and two years for smaller ones – there is a significant decline in satisfaction levels.
In 2020, half of the fintechs surveyed believed their banking partners had positively impacted their business, but that number has dropped to just 29% in 2024.
Even more concerning is that 61% of respondents now feel their banking partnerships have had a neutral impact on their business.
For smaller fintechs, the dissatisfaction is even more pronounced, with 72% reporting no meaningful benefits from their agency bank relationship.
The report highlights that 15% of fintechs are actively looking to switch providers, with this number rising to 23% among mid-sized companies.
Most cite the pain of switching as the only reason for staying with their current provider.
This growing discontent comes at a time when service expectations are higher than ever.
Satisfaction with agency banks’ speed, security, reliability, and ease of use has notably declined since 2020, especially among larger fintechs.
Perhaps most troubling is the growing disconnect in how fintechs view their agency banking partners.
Fintechs no longer see banks as trusted partners or drivers of innovation.
Instead, many agency banks are viewed as mere utilities – necessary but uninspiring.
This perception poses a significant risk to agency banks, especially as fintechs increasingly prioritise innovation to stay competitive in the fast-paced financial landscape.
John Salter, Chief Customer Officer at ClearBank, warns of the consequences: “Fintechs don’t want just another supplier. They need partners who challenge their thinking and drive innovation.
Agency banks that fail to evolve and provide a high level of service will find themselves losing ground to more forward-thinking competitors.”
As fintechs demand more from their banking relationships, agency banks must adapt or risk becoming obsolete in a rapidly evolving market.
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