“Future banks will operate in different modes: direct to consumer, as-a-service, marketplace seller, and platform owner — all of which may operate concurrently. Yet no bank will do any of this alone.”
According to the latest worldwide market study by Juniper Research, the total value of B2B cross-border payments will reach $35 trillion in 2022. That’s up from a COVID-related low of $27 trillion in 2020, representing 30 percent growth.
Financial-technology companies are changing the face of finance. Over the past ten years, disruption in the payments space has expanded to every corner of finance. Even areas once assumed to be safe are seeing new entrants and competitive threats.
FinTechs have the potential to be the engines of innovation we need during the Great Reset. The findings of the World Economic Forum’s FinTech Cybersecurity Consortium provide a starting point on the path to a security management system to get them there.
Everest Group predicts that the spend on IT services in the capital markets industry will decline 2.1% in 2020 due to COVID-19, with outsourcing spend seeing a dip of -3.7% as firms reallocate resources and cost transformation initiatives are prioritized.
via Everest Group
China’s financial services industry is transforming at a rapid pace. Chinese policymakers have committed to opening domestic capital markets, which will create opportunities for Chinese individuals and investors as well as domestic and global financial institutions.
“Open banking IT service providers can help banks build the capabilities they desire. To do so, they are investing in business advisory assets to help financial services firms plug the gaps in their business change management initiatives. They are also investing in Fintech partnerships, talent and solutions.”
via Everest Group
While deals and dollars to global fintech companies are both down, certain parts of the fintech ecosystem actually stand to benefit long-term from the COVID-19 pandemic. Mirroring other sectors, fintech activity and investment has been muted through the first five months of 2020.
via CB Insights
The benefits of blockchain for customers underpin the benefits for insurers and the financial services industry more widely. Clear audit trails and the ability to monitor and audit financial transactions in real-time enhance the ability of regulatory supervisors to ensure the stability of the financial system.
“Big tech has already, largely, mastered the Open Source way, using it as the backbone of much modern technology, making Foundations like the Linux Foundation or the Apache Software Foundation the largest shared technology investments in the world.”