As such, this report examines how banks are making sense of the emergent fintech vendor landscape in 2018, and it investigates the approaches banks use to engage with fintech start-ups outside the confines of traditional procurement processes. In doing so, the report quantifies the engagement initiatives of 30 Tier I and Tier II investment banks, appraising the outcomes thereof by gathering the views of a variety of bank stakeholders and emergent fintech companies.
Banks have, to differing degrees, struggled to capture, internalise and benefit from the innovative fintech offerings despite the proliferation of third-party solutions within their organisations over the last 10 years. While fintech vendors have long been part of the financial services ecosystem, the past decade witnessed extraordinary growth both in the number fintech firms in operation and in the breadth of their solutions. Banks are struggling to find mutually beneficial engagement opportunities with emergent fintech firms that – for a variety of reasons – are challenged to complete bank procurement processes or whose product offerings may not be commercially mature.
This report quantifies a range of initiatives by which banks, in 2018, engage these emergent fintech companies through internal innovation teams, strategic investment initiatives and through a variety of innovation lab and technology accelerator structures. The report also assesses the suitability of these initiatives for engagement with emergent fintech companies, and it identifies key criteria for success.
