A report published by Accenture highlights the fast growth of Fintech in the US and Europe. According to the publication, global investments in fintech companies grew by 201% in 2014 with the biggest share going to the US and the second biggest to the UK and Ireland. Europe overall seems to have achieved the faster growth rate, as investment in the region rose from $264 million in 2013 to $623 million in 2014.
Crowd Valley observed in its latest Digital Investing Market Report a growth in the number of banks that are exploring the opportunity to enter the peer-to-peer lending marketplace. The report from Accenture confirms the trend but also highlights some obstacles banks face in front of fintech. For example, although most of the surveyed banks see working with start-ups as a valuable way to bring new ideas to their business, 56 percent claim that their organisational cultures need to change in order to work effectively with start-ups. The majority also feel that they lack the skills and culture needed to succeed in the digital age and only a half said that their bank has a strategic approach to replacing its old technology.
Despite all of these challenges they are facing, of which they seem to be very well aware of, many feel confident about the future of the banks: they think incumbents will coexist with new fintech companies or that they will increasingly merge, with banks acquiring innovative start-ups in the sector. Furthermore the report shows that the majority of respondents has a positive attitude toward fintech, declaring themselves as willing to collaborate with start-ups and other peers to more effectively adopt innovative technologies. This is already happening, with a few established banks, for example, having established partnerships with promising peer-to-peer portals.
If the future of fintech looks bright, how does the banks’ look like? It is up to them and their ability to live and adapt to the digital revolution.
Dickerson, J., Masood, S., Skan, J. (2015). The Future of Fintech and Banking: Digitally Dirsupted or Reimagined? . Accenture.
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.