
Strategic Partnerships in Fintech - Thematic Intelligence
Description
Strategic Partnerships in Fintech - Thematic Intelligence
Summary
The digitization of banking drives disaggregation. Ever smaller pieces of the banking value chain can be bitten off by highly specialized new entrants. This creates partnership opportunities with best-in-class, specialist players across front, middle, and back-office functions. We organize the analysis in this report around four main categories of partnership, and highlight illustrative partnerships within each area. The categories are ‘enabling technology,’ whether core banking or front-end channel technology; ‘banking products and services,’ which subsumes more product-specific, customer-facing tech capabilities; ‘banking ecosystem,’ which includes partnerships with, for example, account software providers and digital mortgage brokers; and ‘non-banking ecosystems,’ which is partnerships with other industries or verticals.
In 2024, rising rates, funding costs, and a stricter regulatory environment, will incline more otherwise D2C fintech providers to pivot to B2B monetization and other forms of partnership. Those firms that last raised at the top of the market, when long-term growth potential was valued more than near-term profit potential, will face difficult choices. Working with proven partners and business models, for distribution or as a tech partner, will become more attractive. Many fintech firms have come unstuck from regulatory issues, Rails Bank perhaps the biggest example, so partnership with banks can help beef up credentials in this area and steady the ship.
Scope
- “Partnership” has become a catch-all term for a wide variety of different collaborations, which could be as ‘light’ as a referral agreement with a non-traditional SME lender, to white labeling the underlying credit risk capabilities, to co-development of the overall platform, to outright acquisition.
- The budget category with the highest number of respondents planning a “high” investment in 2023 was fintech partnerships, selected by 51.6% of respondents (out of nine possible options). This underlines how absolutely foundational fintech partnerships are to broader transformation initiatives.
- Gen AI has eclipsed virtually every other technology, with a palpable fear of missing out if incumbent banks cannot identity the most proven early use cases, and deploy them widely across the enterprise to harvest maximum cost reduction.
- Understand how technology and macroeconomic trends will impact how, why, and where firms will partner across the next 12-24 months.
- Understand the latest regulatory trends impacting fintech partnerships, and where opportunities may exist for new entrants versus incumbent banks.
- Review the latest bank spend data on how other key budget categories compare to fintech partnership spending on a time-series basis.
- Review firm-level insight on partnerships within each of the categories identified in our analysis.
Table of Contents
49 Pages
- Executive Summary
- Players
- Thematic Briefing
- What is a strategic partnership
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- ICT spend on fintech partnerships
- Core banking
- Lending
- Wealth management
- Timeline
- Signals
- News mentions
- Deal activity
- Value Chain
- Enabling banking technology
- Banking products and services
- Banking ecosystems
- Non-banking ecosystems
- Companies
- Financial services companies
- Sector Scorecards
- Banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Technology trends
- Table 2: Macroeconomic trends
- Table 3: Regulatory trends
- Table 4: Financial services companies
- Table 5: Glossary
- Table 6: GlobalData reports
- List of Figures
- Figure 1: What are the key categories of fintech partnership, and who are some of the key players?
- Figure 2: Partnership models often deepen as business benefits materialize
- Figure 3: In 2023, over half of respondents planned high investment in fintech partnerships
- Figure 4: In 2022, fewer executives planned significant spend increases on fintech partnership
- Figure 5: The strategic partnership story
- Figure 6: News mentions for strategic partnerships peaked in 2023
- Figure 7: Deal volume in 2023 is many multiples smaller than its 2018 peak
- Figure 8: Banking and payments M&A dela value and volume by sub sector (2022 vs 2023)
- Figure 9: The strategic partnerships value chain
- Figure 10: The strategic partnerships value chain - Enabling banking technology
- Figure 11: The strategic partnerships value chain - Banking products and services
- Figure 12: The strategic partnerships value chain - Banking ecosystems
- Figure 13: The strategic partnerships value chain - Non-banking ecosystems
- Figure 14: Who does what in the Banking space?
- Figure 15: Thematic screen
- Figure 16: Valuation screen
- Figure 17: Risk screen
- Figure 18: Our five-step approach for generating a sector scorecard
Pricing
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