Next week at SIBOS, we are launching our new research report, Capital Markets: Innovation and the FinTech landscape.
While FinTech’s success in starting to disrupt retail financial services is well document, we think the story in the B2B world of capital markets is one of collaboration. Investment banks have numerous challenges, from falling returns on equity to structural costs that are proving hard to shift, to conduct issues and a daunting portfolio of regulatory change. The funding, and indeed energy, left to innovate is limited. Thankfully there is a FinTech community that bring fresh thinking using the latest technology that can help to address many of the challenges. While it may be hard for FinTech firms to disintermediate investment banks, they can add considerable value as partners within the ecosystem.
In our report we discuss the need for collaboration, the emerging technology trends that make innovation possible, current pain points and opportunities, and suggestions for how investment banks and FinTech firms might engage with each other in ways that accelerate the progress from lab to production.
We believe that innovation is now mandatory, and that the future is better ecosystems rather than bigger banks.
Our report, published in conjunction with Innovate Finance, is constructive, and looks ahead to the opportunities for capital markets firms and not just the doom and gloom so often reported. The executive summary is out now, with the full report, informed by interviews with professionals from investment banking, FinTech, venture capital and regulators, to follow next week.