Innovation Quarterly: Latest in FinTech Innovation Q4 2015

by Stephen Greer, November 30, 2015
Industry Trends
Global

Abstract

In 2010, investment in the Fintech space totaled less than $2 billion. More than $12 billion went into FinTech in 2014. 

The influx of investment has spurred rapid growth of new companies looking to take advantage of the opportunities to challenge incumbent Financial Institutions. Nowhere is the growth of FinTech more evident than at industry conferences like Swift’s Innotribe and Finovate. These events are the testing grounds for innovative creations, growing each year to include even more emerging players.

In the report Innovation Quarterly: Latest in FinTech Innovation Q4 2015, Celent profiles a number of recent startups. The report begins with a brief overview of where the market stands, analyzes the startups, and concludes with Celent’s suggestions for financial institutions as they navigate the space.

As financial institutions begin to acknowledge the importance of this emerging segment, they are increasingly exploring avenues like strategic partnerships, acquisitions, venture capital, and co-development to be a part of the change rather than a casualty of it. Yet the industry is moving fast, and each year more companies are emerging with creations that could change the dynamics of financial services. Even for the largest institutions, following the market is a challenge. 

“Banks can either resist FinTech startups or seize the opportunity to actively embrace working with them,” says Stephen Greer, an analyst with Celent’s Banking practice and author of the report. “Resisting could mean disruption in the long run, and the disintermediation of a business that has been relatively unchanged for decades. Banks need to start taking these new players seriously.”

This 26-page report contains 13 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 a wholly-owned subsidiary 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

Banks Need to Stay on Top of Innovation

2

 

Is There a Fintech Bubble Forming?

4

What’s New in Innovation

6

 

Neobanks

6

 

Peer-to-Peer

10

 

Data

17

Practical Takeaways

22

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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