Open Innovation in Fintech: 3 Case Studies of Corporate-Startup Collaboration
Synopsis
Open innovation is transforming the financial industry as corporations and governments collaborate with fintech startups to drive new solutions. In this article, we explore three recent open innovation case studies that successfully bridged the gap between established financial institutions and emerging fintech players, leading to tangible improvements in efficiency, compliance, and customer experience.
Introduction: Why Open Innovation is Crucial in Fintech
Financial technology is evolving rapidly, with AI-driven automation, blockchain-based security, and embedded finance reshaping global markets. However, large financial institutions often struggle with agility, while startups lack the scale to implement disruptive technologies effectively. Open innovation bridges this gap, enabling collaboration between banks, fintech firms, regulators, and tech companies to accelerate financial innovation.
This article highlights three groundbreaking open innovation initiatives that have reshaped fintech in Europe, Asia, and North America.
Case Study 1: ING Bank & Minna Technologies (Netherlands, 2022)
Case Study 1: ING Bank & Minna Technologies (Netherlands, 2022)
Company & Startup Introduction
Corporate: ING Bank
Industry: Banking & Financial Services
HQ: Amsterdam, Netherlands
Revenue: €18.4 billion (2022)
Employees: 57,000+
Startup: Minna Technologies
Industry: Fintech (Subscription Management)
HQ: Gothenburg, Sweden
Last Funding Stage: Series B (€15.5M, 2020)
Background
European consumers face challenges managing multiple subscription services (e.g., Netflix, Spotify, cloud storage) linked to their bank accounts.
ING Bank sought a solution to help customers track, manage, and cancel subscriptions within its banking app.
Challenge
Customers often forget about active subscriptions, leading to millions in unnecessary spending.
ING needed an automated, secure, and scalable solution for managing recurring payments.
Solution
ING partnered with Minna Technologies to integrate AI-driven subscription management into its banking platform.
The system identifies recurring payments, notifies customers, and allows one-click cancellation from the app.
Impact
47% reduction in unwanted subscription costs for customers.
Higher customer engagement with the ING banking app (+20% logins per user).
Expansion of the solution to other European banks, including Swedbank and Lloyds.
Case Study 2: SBI Holdings & Ripple (Japan, 2023)
Case Study 2: SBI Holdings & Ripple (Japan, 2023)
Company & Startup Introduction
Corporate: SBI Holdings
Industry: Financial Services & Investment Banking
HQ: Tokyo, Japan
Revenue: $4.9 billion (2023)
Employees: 9,000+
Startup: Ripple
Industry: Blockchain & Payments
HQ: San Francisco, USA
Last Funding Stage: Series C ($200M, 2019)
Background
Japan is a key remittance corridor, with billions transferred yearly by migrant workers.
Traditional cross-border transactions via SWIFT take 2-5 days and have high fees.
SBI Holdings explored blockchain-based remittance to increase transaction speed and transparency.
Challenge
Cross-border payments needed real-time settlement to compete with emerging fintech solutions.
Regulatory concerns around cryptocurrency and blockchain adoption.
Solution
SBI Holdings partnered with Ripple to implement RippleNet for blockchain-based remittances.
Introduced On-Demand Liquidity (ODL) to facilitate near-instant payments without pre-funded accounts.
Impact
Cross-border transactions reduced from 3 days to under 10 seconds.
30% lower transaction fees compared to traditional SWIFT payments.
Regulatory approval led to wider adoption in Southeast Asia and South Korea.
Case Study 3: Mastercard & Zeta (USA, 2021)
Case Study 3: Mastercard & Zeta (USA, 2021)
Company & Startup Introduction
Corporate: Mastercard
Industry: Payments & Financial Services
HQ: Purchase, New York, USA
Revenue: $22.2 billion (2021)
Employees: 29,900+
Startup: Zeta
Industry: Banking-as-a-Service (BaaS)
HQ: San Francisco, USA
Last Funding Stage: Series C ($280M, 2021)
Background
Traditional credit card processing involves legacy systems that lack flexibility.
Fintech firms need modern APIs to create new digital banking experiences.
Challenge
Banks require faster and more cost-efficient card issuance and payment processing.
Need for embedded banking solutions for neobanks and fintech startups.
Solution
Mastercard partnered with Zeta to provide a cloud-native card issuance platform.
Banks and fintechs can now launch virtual and physical cards in days instead of months.
Impact
65% reduction in card issuance costs for banks and fintechs.
Increased adoption by over 30 banks and 150 fintech startups globally.
Mastercard expanded its BaaS ecosystem, strengthening its fintech positioning.
Conclusion: Key Takeaways & Future Outlook
Collaboration accelerates fintech innovation, enabling startups to scale while corporates gain agility.
Blockchain, AI, and embedded finance are driving the most impactful open innovation cases.
Future trends point to decentralized finance (DeFi), sustainable fintech, and quantum computing in banking.
