Traditional Banking and FinTech: Finding the Balance in Evolution


Is it a competition or a collaboration between traditional banking sectors and financial technology, also known as FinTech? While in the last few years, we have witnessed many banks and holding companies acquire several finance technology software providers, the financial service industry is at a crossroads of digital disruption in FinTech and the more out-dated, Legacy systems. The financial landscape is shifting, with offerings of innovative solutions and easier market access, as well as challenging the traditional financial realm as we know it.

Traditional banks, with their deep-rooted systems and procedures, are finding themselves at a crossroads, needing to adapt to the digital-first approach that FinTech companies champion.

Amidst this backdrop of change, we sat down with Tommaso Zapparrata, a seasoned financial expert and entrepreneur, who has been navigating this intersection with remarkable insight and innovation. Zapparrata’s journey from the marble import and export industry to establishing a significant footprint in the FinTech space provides a unique perspective on the collaborative potential between traditional banking sectors and FinTech. His ventures, particularly Goldman Tech Valley Srl, exemplify the synergies that can be achieved when the old meets the new in the financial realm. In this interview, Zapparrata sheds light on the dynamic relationship between these two worlds and offers his vision for their future.

Q: Tommaso, could you share your insights on whether this intersection is more of a competition or a collaboration?

Tommaso Zapparrata: Absolutely, and thank you for having me. It’s intriguing to observe this dynamic unfold. Initially, one could perceive it as competition, given how FinTech innovations challenge traditional banking norms. However, the essence of this relationship is deeply collaborative. Banks have started recognizing the value in acquiring or partnering with FinTech firms to enhance their service offerings. It’s not just about acquiring new technologies but also about embracing a mindset shift towards more agile and customer-focused solutions.

Q: There seems to be a concern within traditional banking about integrating with FinTech due to cost pressures. How do you navigate this?

Zapparrata: It’s a valid concern. The financial sector is under constant pressure to reduce costs, which can deter investments in new technologies. But the cost of not adapting could be much higher in the long run. Banks need to view FinTech collaboration not as an expense but as an investment in future-proofing their operations. Through strategic partnerships, we can develop solutions that streamline operations, reduce costs, and, most importantly, enhance customer experience.

Q: Looking ahead, what do you envision for the future of banking and FinTech?

Zapparrata: The future, I believe, will be characterized by a symbiotic relationship between traditional banking and FinTech. We’re moving towards a financial ecosystem where digital transformation enables banks to offer comprehensive, customer-centric solutions. This collaboration will unlock unprecedented growth and innovation in the sector. My goal with Goldman Tech Valley Srl is to be at the forefront of this evolution, creating software that not only addresses current market needs but also anticipates future trends.

Q: As someone deeply entrenched in this evolution, what message do you have for traditional banking institutions hesitant about embracing FinTech?

Zapparrata: My message is one of optimism and encouragement. The integration of FinTech is not a threat but an opportunity to redefine what banking can be. It’s about enhancing what we already have, making financial services more accessible, efficient, and tailored to the modern consumer’s needs. The journey may require bold steps and a willingness to adapt, but the rewards—both for the institutions and their customers—are immense.

Final thoughts

With technology advancing rapidly, having financial software that is constantly evolving poses a problem for larger players in the industry who serve a huge client base. However, the challenges that the financial industry faces with FinTech can be overcome. This digital transformation can help banks provide comprehensive solutions while also collaborating with FinTechs among them. Zapparrata’s company, Goldman Tech Valley Srl, is helping change the game in the trading sector with innovative software that also helps with money management.

Change isn’t always in with the new and out with the bad, sometimes it is about reimagining the legacies that exist to create a better future.

Tommaso Zapparrata

About Tommaso Zapparrata

Born into a family of entrepreneurs, trading has long been a passion for Tommaso Zapparrata. After obtaining a degree in Business Economics, he went on to establish himself in the field of software development. Now, his company is a leading force in the trading sector, providing innovative software while helping others with money management.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. and Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2024. Nasdaq, Inc. All Rights Reserved.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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