Fintech finance afire
Global investment in fintech ventures tripled from $4.1 billion in 2013 to $12.2 billion in 2014, with Europe the fastest-growing region. In fact, fintech is so hot that investment increased at more than three times the rate of overall VC funding, according to a new report from Accenture. “The massive investment in fintech shows that the digital revolution is well advanced in financial services, and it is both a threat and an opportunity for banks,” says Julian Skan, Accenture md overseeing the FinTech Innovation Lab London. “Fintech is empowering new competitors and start-ups to move into parts of the banking business.”
He adds that fintech is also leading to increased cooperation between traditional banks and start-ups and technology businesses, resulting in totally new business models and revenue streams.
And banks need help. Four out of five banking execs say that when it comes to skills and culture, their banks are only “somewhat” or “minimally” equipped for the digital age. Plus there’s one big barrier. Although 80% of industry execs see working with start-ups as a valuable way to bring new ideas to their business, over half say their organisational cultures need to change in order to work effectively with such outfits.