Alternative lenders have seen a dramatic reversal of fortunes in the last 12 months, while payments firms have reached maturity and we are seeing increasing consolidation in the market.
At the same time, new segments are gaining investment and media attention — insurtechs, regtechs and robo-advisors in particular. Incumbents in industries like insurance and wealth management have so far been complacent when it comes to innovation, but they now need to wake up to the threats and opportunities these new players present.
When it comes to regtech, all legacy players stand to benefit from a proper assessment of where smaller firms can supplement existing systems to make achieving compliance easier.
And robo-advisors are on the rise, as BI Intelligence forecasts that they will manage $8 trillion in assets worldwide by 2020. Moreover, these companies are starting to make inroads with some household names, such as the recent partnership between Betterment (the largest U.S. robo-advisor) and Uber.
Insurtechs have started to thrive because the insurance industry has been slow to modernize compared to the rest of the financial services industry. This is due to several factors, such as capital requirements and complicated regulations.
But as these barriers slowly crumble, insurtechs have stepped in to seize the opportunity. VC-backed funding for insurtechs grew 225% between 2014 and 2015.
Regtechs are in a similar situation. From 2008 to 2015, the annual volume of regulatory publications, changes, and announcements that financial firms must adhere to increased 492%. But existing compliance systems are struggling to handle the amount of new and complex regulations, which is where regtechs have come in to help. Legacy financial firms have been partnering with these companies to handle the new environment.
As you can see, this very fluid fintech environment is creating winners and losers before your eyes…and it’s also creating the potential for new cost savings or growth opportunities.
After months of researching and reporting this important trend, Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider’s premium research service, has put together an essential report on the fintech ecosystem that explains the new landscape, identifies the ripest areas for disruption, and highlights the some of the most exciting new companies. These new players have the potential to become the next Visa, Paypal or Charles Schwab because they have the potential to transform important areas of the financial services industry like:
- Retail banking
- Lending and Financing
- Payments and Transfers
- Wealth and Asset Management
- Markets and Exchanges
- Blockchain Transactions
If you work in any of these sectors, it’s important for you to understand how the fintech revolution will change your business and possibly even your career. And if you’re employed in any part of the digital economy, you’ll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable.
Among the big picture insights you’ll get from The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry:
- Fintech investment continues to grow. After landing at $19 billion in total in 2015, global fintech funding had already reached $15 billion by mid-August 2016.
- The areas of fintech attracting media and investor attention are changing. Insurtech, robo-advisors, and digital-only banks are only a few of the segments making waves. B2B fintechs are also playing an increasingly prominent role in the ecosystem.
- It’s not all good news for fintechs. Major hurdles, including customer acquisition and profitability, remain. As a result, many are becoming more willing to enter partnerships and adjust their business models.
- Incumbents are enacting strategies to ensure they remain relevant. Many financial firms have woken up to the threat posed by fintechs and are implementing innovation strategies to stave off disruption. The majority of these strategies involve some interaction with fintech firms.
- The relationship between incumbents and fintechs continues to evolve. Fintechs are no longer viewed exclusively as a threat, nor can they be ignored. They are increasingly viewed as partners, but that narrative alone is too simple — in reality, a more nuanced connection is taking hold.
This exclusive report also:
- Assesses the state of the fintech industry.
- Gives details on the drivers of its growth.
- Explains which areas of fintech are gaining traction.
- Outlines the range of current and potential models for fintech and incumbent interaction.
The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry is how you get the full story on the fintech revolution.
To get your copy of this invaluable guide to the fintech revolution, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
- Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of financial technology.
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