Fintech has revolutionised the way that we see financial institutions, trade internationally and do business worldwide. With new startups launching every day, the consumer demand for these digital services and innovative products continue to motivate markets. The FinTech industry is preparing our financial system and economy for the future.
Currently, the FinTech industry is parented by both the technology and financial industries. In a space where well-funded tech innovation is rapidly reshaping the centuries-old finance sector, bankers, investors and analysts share worldwide growth predictions. Digital technology has now become the core of almost every industry and business.
By partnering and collaborating with smaller fintech startups, established companies can accelerate industry growth and push the capabilities of both parties forward. Australia has a unique fintech ecosystem, with impressive talent and the much-needed capital to get these start up companies off the ground. By embracing the FinTech partnership model, Australia can solidify their position as a leader in the global FinTech space.
Financial technology companies give flexibility and an ability to pivot, something that larger companies cannot do as simply and as viably. FinTech companies are faster to react and ultimately, could be able to provide superior solutions when compared with more traditional institutions.
The number of FinTech companies acquired by banks now exceeds the number of FinTech IPOs. Through the first six months of 2017, corporate investors — mostly financial institutions — participated in more than 20 percent of FinTech VC deals, according to KPMG. In other industries such as insurance and healthcare, the same thing is happening. Large companies are either acquiring or investing in FinTech start-ups. Like most other innovations, FinTech will likely become part of the mainstream corporate structure in each of the industries it affects.
Also, a transparent and real‑time operation of FinTech innovations, such as Blockchain and digital currencies, are generating new value streams through innovative new products and services.
The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person.
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