Capital Markets innovation and the FinTech landscape

In our view, there are countless opportunities
for collaboration between investment banks
and the FinTech community. The proliferation
of financial technology startups is increasing,
taking advantage of today’s low costs of
technology platform development and the
lack of innovation within banks. At the time
of writing, it is estimated that there are over
5,000 FinTech firms in existence, and this
number is set to continue to grow.
To pinpoint and explore these collaboration opportunities,
we first examine the underlying technology trends that are
enabling the development of different solutions. Then, we
look front to back across the business functions of investment
banks to identify areas where there is the potential for them
to benefit from the thinking, innovation and investment
associated with FinTech.
As this section will show, there is no shortage of ideas for
innovation. Validation and execution may prove to be a bigger
challenge. It’s also worth noting that some of the ideas set out in
this section are not new. What is new is that the technology now
available has increased their feasibility.
5,000
Number
of FinTech
firms
Capital Markets: innovation and the FinTech landscape | 19