Not All AgFintechs Are The Same

Banks are increasingly turning to fintechs to stay competitive, innovate and deliver enhanced services to their customers. But not all agfintechs are the same. The process of selecting the right partner can be a complex undertaking that requires careful consideration and strategic planning.

As the value of farmland continues to soar, ag lending is becoming a compelling investment. However, many traditional financial institutions are reluctant, primarily because they are unfamiliar with the industry.

Unlike traditional risk assessment processes for commercial loans, agricultural lending requires additional farmland-specific data points, that are not reported by analytics companies, publicly available to investors, or standardized by any measure.

This means financial institutions are looking at fintechs for additional farmland resources. As the space becomes increasingly crowded with tech companies “band wagoning,” the pool of credible agfintechs remains small.

In this Bank Business News article, Jim O’Brien assesses five critical factors during the data vendor evaluation process to ensure a successful fintech partnership, since not all agfintechs are the same. These factors include defining objectives, compatibility, expertise, data quality, and innovation/

Read more here!