Capgemini: Collaboration is crucial to the success of fintech
A new study, conducted by Capgemini in partnership with LinkedIn and Efma, has cited the importance of key collaborations and partnerships between innovators and established firms in the financial services industry.
The World Fintech Report 2018 examines how fintechs are transforming the financial services industry through greater use of technologies and a focus on customer centricity.
“FinTech firms are finding success with a customer-centric focus that fills in gaps left by traditional firms," said Penry Price, Vice President, Global Marketing Solutions, LinkedIn. "These gaps opened the doors to fintechs, but trust in traditional firms remains important to customers."
Within this lies an opportunity of leveraging both the technological nous of fintech firms with the financial expertise, such as risk management and access to capital, that traditional financial firms hold.
According to Capgemini, 75% of fintech firms identify their primary business objectives as partnering with traditional firms.
"It is essential that both fintechs and traditional firms transform their business models by collaborating to drive innovation while retaining customer trust,” said Anirban Bose, Head of Capgemini’s Financial Services Global Strategic Business Unit and Member of the Group Executive Board. “Without an agile and committed collaboration partner, both traditional and fintech firms risk failure.”
Finding the right partnerships will be crucial to the performance of industry-based organisations in the long term.
Those looking to succeed will need to work with aligned firms who complement each other's strengths in the aim of maintaining operational and competitive efficiency in such a harsh market.
For more information, see the full World Fintech Report 2018.