Fri, Apr 07, 2017 - Page 11 News List

Almost half of big banks eyeing fintech start-ups

Bloomberg

Big banks might have scoffed when a gaggle of financial technology upstarts promised to reinvent their business. Now they want to buy them.

Almost 50 percent of financial services firms around the world plan to acquire fintech start-ups in the next three to five years, according to a report released yesterday by PricewaterhouseCoopers LLP.

Eight out of 10 institutions foresee making strategic partnerships with peer-to-peer lenders, digital money transfer platforms and myriad other firms that are reshaping the finance sector.

The findings show that fintech is shifting into a new deal-making phase, said Steve Davies, the head of PricewaterhouseCoopers’ fintech practice in Europe, the Middle East and Africa.

“Fintech collaboration is not about jumping on the latest bandwagon — it’s about finding the best, most efficient way to deliver your business strategy and ultimately better serve your customers,” Davies said in a statement. “The financial services industry has embraced fintech.”

Fear might be motivating finance leaders as much as the desire for innovation.

The 20-page report, titled Redrawing the Lines: FinTech’s Growing Influence on Financial Services, found that four of five banking executives worry they are going to lose revenue to independent fintech firms.

PricewaterhouseCoopers said it polled 1,308 financial services managers worldwide for the study.

POSSIBLE WINDFALL

If banks do embark on a fintech shopping spree, that could be a windfall for venture capitalists.

Investors plowed more than US$132 billion into fintech start-ups globally between 2010 and last year, according to KPMG International and CB Insights, a New York research firm.

Last year, there were 51 acquisitions or initial public offerings of fintech firms in deals worth US$1.1 billion.

This story has been viewed 3311 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top