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FinTech Funding, Microsoft Azure, BT & Openreach, Cloud Analytics, Hedge Fund Industry Working Groups
Friend or Foe? Why fintech and banks need each other
Will new technology unseat traditional banks? Can Fintech start-ups & vendors survive long enough to prove themselves?
I’ve heard different opinions of these questions throughout my 18-year career – first, in the late ’90s during the internet boom and now during the mobile boom. The tone is confrontational – particularly when it comes to Fintech start-ups & vendors versus the big banks. But, that mind set is all wrong. Fintech companies and banks actually need one another and over the long-term, they make perfect partners.
The reality is that financial services incumbents, early-stage start-ups, technology companies, like Storm IT Financial, and large tech companies are competing for air in a competitive marketplace. The degree of rivalry is intensifying as start-ups
in Silicon Valley and elsewhere have had their confidence levels fueled by easy access to capital. According to a recent PwC MoneyTree Survey, capital flows were up 600 percent over prior year averages, a phenomenon last seen in 1999.
If you believe the hype and or ready the mainstream press, banks have never looked more out of fashion. And seemingly arrogant start- ups tend to overlook the benefits of collaboration because they want to seize the market opportunity for themselves regardless of the stakes. My observation is that in the short-term, there’s some antagonism between both parties and the peak of competitive friction coincides with the peak in valuation.
Whether funding has peaked or not (and it will), as venture capital money has become less available, we will see a more grounded ap- proach come into view. The banks that quietly lusted after the innovative capabilities and determined curiosity of Fintech start-ups will be ready to collaborate and learn new tricks. After all, these are attributes that financial institutions are trying to emulate in order to deliver enhanced solutions to their customers faster. Fintech start-ups, that have faced disappointment in pursuing an IPO, will be look- ing for new customers, access to large suppliers and areas of growth.
So why wait until valuations cool to start talking?
While the popular view is that few entrepreneurs want to tie up with a large, traditional corporation, the smartest and most ambitious innovators see the benefit of working with a leading financial institution to amplify the reach of their game-changing technology. On the flip side, some might assume that big, more risk-averse financial institutions would shy away from embracing innovation from a start-up that thrives on failing fast and cheap. But the truth is banks embrace trends and technology that benefit their customers. And, speed-to-market is the new bank lexicon.
Combining the strength and experience of established players with ideas from emerging Fintech entrepreneurs and vendors is a power- ful relationship that needs to benefit both parties. It gives ideas a better chance of becoming successful, It’s a playing field where eve- ryone can win. The primary aim of the Banks shouldn’t financial but engaging with Fintech’s and vendors to explore and materialize
new ideas and technologies. Fintech’s benefit by collaboration and working with banks and value their financial stability, scale, and deep understanding of customers. Banks embrace the speed, flexibility and creativity of Fintech companies and vendors like Storm IT Financial.
There is a place for ideas that explode in the market organically – as there is a place for traditional financial products and services.
The time is now to break down the barriers between banks and Fintech companies and vendors. And, in the best-case scenario, there’s one ultimate winner: the customer who benefits. That’s the best idea of all.
Storm IT Financial FinTech News & Trends picks: Week 6th Mar – 10th Mar 2017
Microsoft Azure Brings big data, analytics, and visualization capabili- ties to U.S. Government
Azure providing the latest in cloud innovation for government customers:
BT has finally agreed to a deal to legally separate Openreach
BT has finally agreed with telecom regulator Ofcom to a legal separation of its Openreach:
http://uk.businessinsider.com/bt-agrees-deal-ofcom-legally-separate-openreach-2017-3
WhatsApp is letting a handful of startups test its business chat tools
WhatsApp, the Facebook-owned messaging service is testing a business chat systems:
http://uk.businessinsider.com/whatsapp-lets-y-combinator-startups-test-business-chat-tools-2017-3
Cloud becoming ‘dominant vehicle’ for business analytics, says new report
The Cloud is well on the way to being the dominant vehicle for business analytics:
Smart machines v hackers: How cyber warfare is escalating
Gaps in digital defences that companies use to keep out cyber thieves:
http://www.bbc.co.uk/news/business-38403426?
Qualcomm, Microsoft to Give Cloud Services a Speed Boost
Qualcomm announces a collaboration with Microsoft to accelerate next-generation cloud services:
Hedge Fund Industry Forms Working Group To Focus On Data Management
A new hedge fund industry working group, formed to focus on data management, quality consistency and cost reduction, has officially launched:
http://www.finalternatives.com/node/34754
Fintech funding trends in 2017
Funding landscape has changed dramatically over the last few years:
http://www.cityam.com/260335/fintech-funding-trends-2017
AWS blames human error and S3’s gargantuan scale for outage
Human Error to blame as Engineer pressed the wrong button, cloud giant reveals:
IoD is full of confidence for FinTech’s future
The Institute of Directors has no fears that the FinTech sector will thrive Post Bexit:
http://www.ukfintech.com/global-news-events/iod-is-full-of-confidence-for-fintechs-future
Global FinTech Group For Standardisation Launched
The International Standards Organisation (ISO) an- nounced its new global committee, The FinTech Tech- nical Advisory Group (TAG):
https://www.thehedgefundjournal.com/news/global-fintech-group-standardisation-launched
