Tangerine Bank exec: Entrepreneurs want more from banks

Tangerine Bank’s head of business banking, Jodi Kovitz, has argued that entrepreneurs have evolved faster than the banking sector’s response. In a recent post, Kovitz outlined shifts in how founders approach funding, cash-flow management, and digital tools—areas where traditional banks still lag.

The observation comes as fintech startups globally pivot toward banking charters, a trend tracked in recent months. Firms like SoFi, Klarna, and PayPal now operate as banks, while others have shifted focus to infrastructure plays. Kovitz’s comments suggest a similar reckoning may be overdue, where legacy banks dominate small-business lending and account services.

Kovitz did not specify whether the bank plans to adapt its offerings. Instead, she framed the mismatch as a broader challenge: entrepreneurs increasingly prioritize speed, embedded financial tools, and flexible credit, while banks remain structured around static products and manual processes. The tension mirrors patterns elsewhere, where regulatory hurdles and risk aversion have slowed incumbents’ digital transformations.

For founders and investors, the takeaway is clear. If banks fail to close the gap, fintech challengers—or even non-bank platforms—could step in with tailored solutions. The question is whether the banking sector will move faster than peers did, or cede ground to new entrants.

Sources: betakit.com