INV #Fintech, the sister accelerator to this site, announced its #fifth class of startups today. The six companies were chosen from among a wide array of applications from across the globe. Here are the six companies comprising the new class of INV Fintech: Active.ai is a conversational AI tool for facilitating intelligent financial micro-conversations. They […]
Bank Innovation
Over the past few years, mobile #payments has become a service that customers expect from their #banks, FIs and e-commerce platforms. Most countries have their own idiosyncratic mobile payment platforms. In the US, we have PayPal-run P2P platform Venmo, and the bank-backed Zelle, among many others. If there is one overarching promise mobile payments makes, […]
Bank Innovation
#Fintech #startups have taken note of the vast opportunity in the SME #space, which has been underserved by #banks since the financial crisis. Add to this the growing number of freelancers and independent contractors, and the market becomes even more attractive. “Small businesses are extremely profitable banking customers,” Trevor Dryer, CEO of Mirador, an SME […]
Bank Innovation
INV #Fintech, the sister accelerator to #Bank Innovation, announced a partnership today with the Berlin-based #Open Bank #Project to provide #sandbox and development services to the startup and its 13 partner companies. The sandbox will #offer startups in the INV Fintech accelerator a secure digital space to access and incorporate bank data into their applications. […]
Bank Innovation
SANTA CLARA, Calif. – New takes on #lending and underwriting dominated the opening day of demos at FinovateSpring 2018 here yesterday. But this being #fintech‘s leading demo showcase, the featured startups offered up these basic, fundamental aspects of banking in a new way, often with “artificial intelligence” under the hood. Six of the 28 demoing […]
Bank Innovation
Long-time #fintech analysts have low #expectations for Facebook’s newly unveiled #blockchain #initiative to be headed by PayPal’s former president. Further, analysts suspect the effort might not center on using blockchain to offer financial services on the Facebook platform. “[I] can’t say I have any idea what the [Facebook] blockchain initiative will focus on,” Ron Shevlin […]
Bank Innovation
The chaos related to data privacy concerns and the use of customer data has had a major, negative impact on the valuation of the so-called FAANG (Facebook, Amazon, Apple, Netflix, Google) companies, reducing their market capitalization by a range of five to 15 percent in just a few weeks and raising questions about the sustainability of the business models of these companies going forward. Chinese Internet giants such as Alibaba, Tencent and Baidu have also been affected.
As the investing community sorts through the news and assesses the prospects for FAANG and other tech companies, European #banks have an #opportunity to reposition themselves as trustworthy, technologically sophisticated companies with opportunities for growth after a lengthy period of reorganization and, in some cases, downsizing.
In the bad news for FAANG, there are some potential positives for banks, including:
While looking at these positive elements, we also need to look closely at the #fintech ecosystem for signs of stress in the wake of FAANG developments. So far, however, fintechs’ ability to raise venture capital and attract early stage investors seems undiminished.
Similarly, the gap between the valuation of banks vs. digital players has hardly diminished over the past weeks, with FAANG price-to-book valuations still at 10 times those for banks. The differential reflects contrasting expectations of the group’s growth potential, with future value reflecting more than 50 percent of the enterprise value of FAANG throughout 2017, vs. only 16 percent of the enterprise value for leading banks, and about -7 percent for the non-leading banks.
Despite the efforts of some banks to be perceived (and valued) as technology players, they have not received tech-type market valuations. The current crisis of trust associated with some FAANGs presents banks with a unique opportunity to leverage the trust and security built into the DNA of many banks.
The post A (brief) moment of opportunity for banks appeared first on Accenture Banking Blog.
Singapore is taking another step towards cementing itself as the top #fintech hub in the world. Today the Intellectual Property Office of Singapore (IPOS) said it would #speed up the patent granting #process for fintechs in the country. Singapore, according to a Deloitte study, ranks first along with London, among 44 hubs across the globe. […]
Bank Innovation
With #fintech funding on the rise, new #startups that want to make their mark on the financial ecosystem are sprouting up every day. From those that focus on payments or mobile, to the ones leveraging social media, #blockchain, and artificial intelligence, there’s a global hoard of startups that want to muscle into the #banks’ territory […]
Bank Innovation
My colleagues Elena Mazzotti and Francesca Caminitti recently pointed out that #banks collaborating with #fintechs can move more rapidly and more effectively than they could on their own to introduce new products, streamline processes, enhance the customer experience and accelerate growth. It is a good time for banks to re-examine their #technology strategies and explore the investments and #partnerships necessary to get to the next level of digital sophistication.
Indeed, Accenture analysis has found that banks’ revenues at risk from #fintech competition are typically in the range of two to three percent from lower loan origination, lower net income and fewer customers acquired. On the flip side, banks can gain a potential three to five percent in revenues by collaborating with fintechs, through enhanced customer acquisition, more fee-based revenues, better pricing accuracy and lower cost of risk.
Finally, we could take the discussion one step further and question the current #focus on “fintechs”. Client journeys are going outside the scope of the purely financial, and relationships could benefit from partnerships between banks and players in other industries such as real estate, health, and education. The focus on fintechs may ultimately prove to be too narrow for banks seeking to enter underserved new markets.
The post Focus on fintechs? How banks can make the most of fintech partnerships appeared first on Accenture Banking Blog.
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