Post-global financial crisis institutions
Modern financial institutions were built to capitalize on being the intermediary, leveraging information advantage and providing access and scale.
Post-Global Financial Crisis, however, they suffer under the weight of enacted and pending regulation, legacy technology, and an accelerating talent drain.
The global financial industry is undergoing a transformational phase due to fast-paced technological changes.
New technology startups, also referred to as FinTech, have started focusing on innovations in the finance space.
The FinTech industry comprises a variety of financial businesses such as online Peer-to-Peer lending, SME finance, crowd-funding platforms, wealth management & asset management platforms, cryptocurrency, trading management, mobile payments platforms and money/remittance transfer, etc.
Fintechs and financial institutions
Partnerships between financial institutions and FinTech’s are a win-win for both partners. Mainstream financial institutions partner with FinTech’s to improve product offerings, increase efficiency, and lower costs.
By partnering with mainstream financial institutions, FinTech’s get to scale their technology and can access capital to grow.
As a result of these partnerships, customers who are previously left out of the financial sector have greater access to higher quality, more convenient, and less expensive financial products and services.