of Fintech Q1 2016

Global fintech market roars back in Q1’16 (cont.)
Collaboration taking precedence over competition
Globally, banks and other financial institutions are becoming more collaborative. The reality is the banks generally have three options
when it comes to fintech: build their own proprietary technology, acquire a relevant fintech company in order to gain access to their
technology, or partner with a fintech company to identify and achieve synergies.
Many banks are coming to realize the benefits of collaborative models. The partnerships created in this model are being forged not
simply between fintech companies and banks, but also from fintechs forming alliances with each other, regulators, and with other
industries in order to achieve common fintech objectives. Some examples of that can be seen in the development of blockchain
technology. More of these types of activities are expected in the future.
Interest in robo advisory growing worldwide
One area gaining momentum globally within the fintech space is robo advisory, as evidenced by Betterment’s $100 million funding
round in Q1’16. In Europe and Asia, robo advisory offerings are still considered to be in the early stages of development – lagging, like
many sectors, behind the US. At the same time, robo advisory companies globally are focusing on broadening the scope of robo
advisory beyond simple portfolio rebalancing. As this area matures and diversifies into more sophisticated portfolio construction and
other offerings, investment is expected to grow significantly.
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