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Emergent FinTech: Defining the Potential and Opportunities

Emergent FinTech: Defining the Potential and Opportunities

Summary

Fintech has the potential to transform banking. Start-ups are introducing new services that are making existing tasks easier and cheaper to perform. They are also creating new markets, with the attendant prospect of new revenue streams. Although these developments could threaten the established banks, they also offer providers the chance to reinvent themselves and reconnect with their customers.

Synopsis

  • Find out which areas of retail banking are most susceptible to fintech-inspired disruption and transformation.
  • Understand the pros and cons associated with the various strategies that banks can use to boost their involvement with fintech.
  • Explore the impact that fintech innovation can have on customer satisfaction with, and loyalty towards, their bank.
Reasons To Buy
  • How can banks overcome internal resistance to change to instill a culture of innovation?
  • In which sectors will fintech have the most impact and cause the most disruption?
  • What strategies should banks pursue to respond to fintech-driven changes in the market and take advantage of the new opportunities on offer?
Key Highlights

Global investment in fintech is growing rapidly, boosted by the creation of several accelerator programs in London, New York, and elsewhere. Banks are responding with their own schemes to identify and nurture fintech innovators.

Fintech is affecting several aspects of retail banking, with peer-to-peer lending, crowdfunding, data analytics, credit facilitation, and biometrics all significantly changing the dynamics of the industry.

Banks are using a number of strategies to combat the threat posed by fintech entrants, including acquiring key targets, partnering with companies that will complement their own services, and allowing access to third-party applications through their platforms.


  • Executive Summary
    • Emergent fintech is transforming the world of retail banking
    • Key findings
    • Critical success factors
  • Defining the FinTech Landscape
    • "Emergent fintech" will drive transformation in financial services
      • Conditions are highly favorable for emergent fintech
    • Investment in fintech is growing rapidly
      • Accelerator programs are proliferating
      • Banks are responding with their own fintech initiatives
      • Banks' fintech initiatives can speed up and streamline the development path
  • The Coming Impact of FinTech
    • Technological ability influences consumer attitudes, behavior, and profitability
      • Consumer satisfaction is dependent upon fintech innovation
      • Digital innovation leads to lengthier relationships
      • Technological proficiency drives product sales
    • Emerging fintech is making its presence felt in key areas
      • Disintermediation risks are undermining the importance of banks
      • The power of the crowd will transform the sharing of finance and information
      • Analytics will become a powerful tool for engaging customers
      • The quality of the customer experience will be greatly enhanced
      • Fintech is allowing providers to serve underbanked consumers
  • Opportunities and Threats for Established Banks
    • Acquisition allows banks to achieve immediate scale in fintech
      • BBVA's acquisition of Simple will be mutually beneficial
      • Advantages of acquisition
      • Disadvantages of acquisition
    • Partnerships offer a more flexible route towards acquiring fintech expertize
      • TD Bank and Westpac have partnered with Moven
      • Advantages of partnerships
      • Disadvantages of partnerships
    • Componentization takes licensing to its logical conclusion
      • Fidor Bank is leading the way with component-based banking
      • Advantages of componentization
      • Disadvantages of componentization
    • Doing nothing is not an option
  • Appendix
    • Abbreviations and acronyms
    • Methodology
      • Verdict Financial's 2013 Financial Services Consumer Insight Survey
    • Bibliography
    • Further reading

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