Having made their mark in relatively safe areas such as payments and P2P lending, fintech firms are now preparing to move into the middle and back office, giving them a multi-billion dollar opportunity to help reboot financial services, but only if they collaborate with the establishment, according to a new paper from Santander InnoVentures, Oliver Wyman and Anthemis Group.
Over the last decade, fintechs have taken advantage of the boom in digital technology and their lack of regulatory oversight to build single-purpose offerings in areas where they can beat traditional financial services players.
Dubbed 'Fintech 1.0' in the Santander lexicon, this has proved relatively successful without posing a significant threat to incumbents or shaking up the banking landscape in the way that markets such as travel and entertainment have been disrupted by the digital revolution.
