Challenging the Status Quo: External Forces Supporting the Rise of Non-Bank Financial Services

by Patricia Hines, September 9, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled Challenging the Status Quo: External Forces Supporting the Rise of Non-Bank Financial Services. The report was written by Patricia Hines, senior analyst in Celent’s Corporate Banking practice.

The report discusses the proliferation of financial solutions being marketed to corporate treasury and financial management groups by startup Fintech firms; the impact of external forces including demographic trends, economic influences, regulatory environment, and technology evolution; and details the move from competition to collaboration among banks and Fintech firms. 

While Fintech firms have some structural advantages that allow them to be nimble, corporate treasurers need to ensure that their Fintech providers meet trust, security, compliance, and risk requirements. As they balance risks and benefits of non-bank financial services, treasury should do the following:

1. Thoroughly understand capabilities.

2. Look beyond the hype.

3. Challenge their partners.

Fintechs are succeeding in certain segments of treasury, but banks are maintaining their distinct advantage of being able to provide clients with a comprehensive set of financial services through integrated delivery channels.

“Fintechs are unbundling traditional corporate banking services, leveraging emerging technologies to offer new, innovative treasury solutions,” says Hines. “But recognizing that universal banks have unrivaled experience meeting the complex needs of corporate customers, many Fintech firms are collaborating with banks through a number of different innovation models.”

This 18-page report contains seven figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

External Forces Supporting the Rise Non-Bank Financial Services

3

 

Economic Influences

5

 

Demographic Changes

7

 

Regulatory Environment

7

 

Technology Evolution

9

Non-Bank Financial Services for Corporate Treasury

10

From Competition to Collaboration

14

The Path Forward

16

About Our Research

17

 

Using Seasoned Professionals

17

 

An Unparalleled Network

17

 

Robust Research Methodology and Independence

17

Related Celent Research

18

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