Friday, July 29, 2016
Fin-Techs & Banks - to compete or to collaborate
Book Excerpt : From “Fintechs can help incumbents, not just disrupt them”
by
By Miklos Dietz et al
Intro :
" Fin-Techs " the name given to start-ups , using technology to make financial services more effective and efficient.
What they do ?
They aim at better cost control, capital allocation and customer acquisition .
Focus segments :
Almost 75% — of fintechs focus on retail banking, lending, wealth management and payment systems. ( What examples come to your mind ? )
In many of these areas, startups have sought to target the end customer directly, bypassing traditional banks and deepening an impression that they are disrupting a sector ripe for innovation. However, our most recent analysis suggests that the structure of the fintech industry is changing and that a new spirit of cooperation between fintechs and incumbents is developing.
by
By Miklos Dietz et al
Intro :
" Fin-Techs " the name given to start-ups , using technology to make financial services more effective and efficient.
What they do ?
They aim at better cost control, capital allocation and customer acquisition .
Focus segments :
Almost 75% — of fintechs focus on retail banking, lending, wealth management and payment systems. ( What examples come to your mind ? )
In many of these areas, startups have sought to target the end customer directly, bypassing traditional banks and deepening an impression that they are disrupting a sector ripe for innovation. However, our most recent analysis suggests that the structure of the fintech industry is changing and that a new spirit of cooperation between fintechs and incumbents is developing.
B2B fintechs partner with, and provide services to, established banks that continue to own the relationship with the end customer. The trend toward B2B is most pronounced in corporate and investment banking, which accounts for 15 per cent of fintech activity across markets. And less than 12 per cent are truly trying to disrupt existing business models, with sophisticated systems based on blockchain (encrypted) transactions technology, for instance.
From “Fintechs can help incumbents, not just disrupt them”
Labels: Citings
