Strategic Partnerships in Fintech - Thematic Intelligence

Strategic Partnerships in Fintech - Thematic Intelligence


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.

  • “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.
Reasons to Buy
  • 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.

Executive Summary
Thematic Briefing
What is a strategic partnership
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
ICT spend on fintech partnerships
Core banking
Wealth management
News mentions
Deal activity
Value Chain
Enabling banking technology
Banking products and services
Banking ecosystems
Non-banking ecosystems
Financial services companies
Sector Scorecards
Banking sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
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

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