How can we embrace FinTech's innovation?

Both areas are of interest to me, simply because I’m a technologist at heart, who works in recruitment.

Changing mind-sets in large industry sectors, like banking, can and does take time. Precedents need to happen where it was seen as beneficial and then the process starts to take shape. Much in the same way with technology, many see it as a potential enabler however they will wait for the precedent to be set before the general adoption takes place.

There are hundreds of new firms, coming up with innovative ideas that should, could, would, might help the sector. As one article noted (http://londonfintechpodcast.com) there are a lot of FinTech start-ups, who have very innovative ideas however the chances of one of them actually getting anywhere is remote. Very remote.

So from a Bank's perspective, the answer is to partner with these firms. Align themselves with the established start-ups, work with them on the products or services offering where they see benefit. They enter the world of “Seeding” and look to invest at the very early stages on a concept, an idea that could, potentially help them if it’s successful. Some of the larger ones have their own research and  development divisions looking in to this as well. All routes are being actively investigated and in some instances they move from a conceptual stage to a “proof of concept” stage.

However, as another article pointed out its all good and well that these large institutions are investing and partnering with these firms, but the reality is, to actually implement the technology involves substantial change. With substantial change, comes inherent risk. And risk, as we know, is not generally something that is appreciated by the banking sector (in the most part!).

Change will come about, new technology will be adopted. Interconnects and transfers will happen quicker as will automated trading and exchanges.

In the meantime we will continue to support our clients across the world whilst they develop their technologies and just maybe it could be adopted by the global banking community in the future.

Do you have any thoughts on the FinTech industry to share? Please contact Matthew Wheeler on 01628 857333 or matthew.wheeler@bps-world.com