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The Fintech Ecosystem Report

fintech-ecosystem-diagram-pngBy Sarah Kocianski

The emerging technologies and firms driving change in financial services and how legacy players can navigate the disruption

echnology is upending workflow and processes in the financial services industry. Tasks once handled with paper money, bulky computers, and human interaction are now being completed entirely on digital interfaces. Given how pervasive financial services are across the globe, the disruption opportunity for fintech startups is massive.

Almost every type of financial activity — from banking to payments to wealth management and more — is being re-imagined by startups, some of which have garnered blockbuster investments. Meanwhile, the old guard is trying to solve a puzzle presented by the fintech revolution: How can they benefit from the rise of digital, and how can they avoid obsolescence?

In this report, BI Intelligence assesses the state of the global fintech industry, highlights the drivers of its growth, outlines the areas of fintech that are coming to the fore, and explains the different models that are emerging as the relationship between fintechs and incumbent financial services firms evolves.

Companies mentioned in the report include: Lending Club, Stripe, Square, Apple, JPMorgan Chase, Goldman Sachs, TransferWise, China Rapid Finance, Lufax, OnDeck, Dwolla, PayPal, Adyen, Simple, Ally, Betterment, Wealthfront, Vanguard, Fidelity, Charles Schwab, Oscar, Azimo, Klarna, Atom Bank, and more.

Here are some of the key takeaways from the report:

Fintech investment continues to grow. After landing at $19 billion in total in 2015, global fintech funding had already reached $15 billion by mid-August 2016.
The areas of fintech attracting media and investor attention are changing. Insurtech, robo-advisors, and digital-only banks are only a few of the segments making waves. B2B fintechs are also playing an increasingly prominent role in the ecosystem.
It’s not all good news for fintechs. Major hurdles, including customer acquisition and profitability, remain. As a result, many are becoming more willing to enter partnerships and adjust their business models.
Incumbents are enacting strategies to ensure they remain relevant. Many financial firms have woken up to the threat posed by fintechs and are implementing innovation strategies to stave off disruption. The majority of these strategies involve some interaction with fintech firms.
The relationship between incumbents and fintechs continues to evolve. Fintechs are no longer viewed exclusively as a threat, nor can they be ignored. They are increasingly viewed as partners, but that narrative alone is too simple — in reality, a more nuanced connection is taking hold.
In full, the report:

Assesses the state of the fintech industry.
Gives details on the drivers of its growth.
Explains which areas of fintech are gaining traction.
Outlines the range of current and potential models for fintech and incumbent interaction.
Interested in getting the full report? Here are two ways to access it:

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