As the financial services industry and Fintechs work ever closer, where does that leave BigTech
Collaboration between the financial services industry and FinTech ventures continues to gain traction, opening up exciting opportunities for both. The rapid progress being made in areas such as big data, artificial intelligence and machine learning is increasingly being seen as an opportunity rather than a disruptive threat. Working in partnership enables the industry and its customers to benefit from the latest innovations while giving fledgling technology firms access to the financial strength and scale needed to commercialise their bright ideas. Many financial services firms are also making targeted acquisitions in the sector and investing heavily in developing ‘home-grown’ capability. With the industry increasingly embracing FinTech, what does that mean for the long-talked of push into financial services by BigTech players such as Google, Apple and Facebook? Although some BigTechs have established payment services they are still largely reliant on using traditional banking partners. If financial services firms and FinTechs are able to successfully lever their combined strengths by working together, how will that impact on BigTech’s prospects for establishing a major presence in the sector? Could they still achieve that alone or would they need to also work in partnership and with whom?