The Rise of FinTech
FinTech has fundamentally changed the financial markets and will continue to do so.
Technological innovation in finance is not new, but the amount of investment in technology and the pace of innovation have increased significantly in recent years. There has been rapid advancement in artificial intelligence, mobile applications, cloud computing, big data analytics, and distributed ledger technology, such as blockchain. This changes business models of established financial institutions, technology companies, and new market entrants alike and affects the entire financial sector, including services for both consumers and wholesale markets.
Financial technology companies consist of both startups and established financial and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.
Banks are embracing FinTech systems to improve customers’ experience and the banks’ operations efficiency. These services are provided by both Startups and established software providers. Depending on the bank, the question of working with either a financial tech startup or established player can be the most delaying process to start the transformation. Additionally, the strategic implications of these decisions can have long-term effects.
Banks must decide if they are:
- Building organic growth from their traditional strengths
- Developing market-facing innovations
- Outsource the development to a third-party
Ruth Stanat says, “The most successful banks will be those that improve agility and reduce cost by using collaboration to bring various components together and build the strongest ecosystem. But before banks and FinTech’s come together, they should be clear about how they want to cooperate.”
We help companies answer their most pressing questions:
- What are the trends?
- Which FinTech innovations suit which bank?
- What FinTech and AI could do for each specific bank?
- Should your organization develop internally?
- Which FinTech systems are you missing?
- How much money should you invest?
- What is their competitors’ position?