Stats on Fintechs interacting with Incumbents

PWC reports that:

  • 32% are engaging in joint partnerships with FinTech companies,
  • 22% buy and sell services to them, and
  • 15% are establishing programs to incubate FinTech companies.(2)

Global FinTech Report; March 2016; pages 25-28.
Spotted in a recent article Banks, FinTech And Regulators: Friends Or Foes?

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We @AdviseOnly have been working with incumbents for a few years. CheBanca to make an example in the digital banking space, Axa Investment Mnagement to name one in asset managements and others. In the next few years thanks to APIs this kind of cooperation will explode, since incumbents will realize soon that partnering is often more efficient (and fast) than buying or doing it internally.

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@serena.torielli That is what I am hearing as well. From the banks I hear two reasons why partner on rev share basis rather than build inhouse - a) Capex b) time to market.

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Make sense. We have spent years and a few millions Euro to develop our risk management/digital investment platform and thanks to APIs banks can have the same service with a high degree of customization for a small fraction of the cost and with a go-to-mkt of a few months instead of years. A fintech version of the Moore law? S.

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@serena.torielli or maybe it is a Platform Law? Possible Metcalfe beat us to that with Metcalfe’s Law. But that is only one part of it i.e. network effects are critical to Platforms. It is something to do with the amount of complexity that is abstracted but a formula is elusive.

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