Fintechs are evolving at a terrific speed, even fast than could have been previously imagined. Not only do they consider the post-COVID recovery to be ancient history, but they have now begun to take a lead in various fields across the sector – something that was talked about even before the pandemic. Fintechs are no longer waiting for financial institutions to come looking for them. Instead, they are now taking active steps themselves to become ‘strategic partners’.
Because that word, “strategy”, has become an absolute must for most of these companies. This doubtless reflects the maturity of the market, where the main priority has become the hunt for talent at senior levels. In fact, fintechs are now claiming that there is a clear lack of talent in these positions, even more than in other profiles that were more traditionally sought, such as in technology and development.
All of this information can be found in a recent voluminous report by Barclays Corporate and Money20/20 entitled ‘Strength in Numbers. Fintechs draw on deeper partnerships to break down barriers to growth’
In a more mature market, Fintech’s more optimistic outlook on growth has advanced beyond a simple focus on seizing the opportunities created by the pandemic, which was their overriding approach according to last year’s report. According to the report’s executive summary, “We are now seeing a return to the far greater investment in strategic growth we saw before the pandemic – with a focus on cross-border activities, acquisition, and new working models to deliver more sustainable, longer-term opportunities”.
This improvement across all levels is driven by a third trend, enhanced collaboration, to the extent that companies are looking for new ways to access the skills they need. Instead of being based on a buyer-supplier contract, these partnerships are increasingly based on mutual benefit: “FinTechs bring innovation, agility and talent to the table, while financial institutions deliver the payments infrastructure required to meet customer needs”.
Here at GDS Modellica, we have taken note of the key points from this report and compiled them in an infographic, so that our readers can get a clear idea of the main take-aways at a glance.