Accenture’s recent report has revealed that ‘global investment in financial technology (‘fintech’) ventures has more than tripled during the last five years’, with customers driving the demand for fintech solutions. Particular growth has been seen in London, now regarded as the european capital of Fintech, with the trend expected to continue for the foreseeable future.
Banks are recognising that small fintech companies hold answers to many of the challenges they face and by acquiring or investing in them, enable them to make way for innovation. ‘For consumers, the biggest bonus of the new wave of fintech innovation is that it is putting them in the driver’s seat. Consumers are demanding mobility, transparency, instant access and competitive products from their financial providers. Instead of banks pushing out products, consumers are increasingly aggregating information online from a range of providers about the service they want, and selecting the most competitive option.’
Mobility is not limited to social interaction, but is increasingly desired in all aspects of our lives, including banking and wealth management, and therefore investment in fintech is becoming an essential requirement for all wealth management firms. Acquisitions of smaller companies and products lead the way in developing a robust digital offering by providing large institutions with an agile engagement platform with the user at the heart of the experience, which can be implemented quickly and effectively.
How do you feel about the banks acquisition of and investment in fintech companies? Do you think this is the way forward for the financial industry? Does this meet consumer needs? Leave your thoughts in the comments box below.