Know Your Frenemy
The word "coopetition" has come in vogue these days. One such example from the World Cup is that of Mexico, a team that would not have even been in the tournament if they were not aided by their hated soccer rivals, the United States. The U.S. beat Panama during the qualifying rounds in a game that was meaningless for them(since the U.S. had already qualified) and allowed Mexico to scrape in by the skin of their teeth. Since that fortuitous turn of events, the Mexican team has performed respectably since given a lifeline into the tournament.
Some may think there's no place for coopetition in the banking industry, but others disagree. I attended a panel discussion recently where representatives from Citi and State Street discussed how banks can work together in appropriate situations.
In the current climate of heavy regulatory burdens and lower revenues, non-typical solutions may be needed to solve some business problems. Cooperative solutions between institutions can be one such example. As Citi's Bobby Carney said during the aforementioned presentation, sometimes the opportunity to co-operate and collaborate rather than duplicate on investments which don’t provide a compelling differentiation is the best way forward.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio