Financial Technology Startups 2010: Giving Banks a Run for Their Money

Abstract

Innovative nonbank startups are targeting the consumer market and competing with banks.

The Internet is in perpetual transition. The ever-evolving nature of this channel has banks careening in all directions to keep up with new technology, shifting business models, and customer demands and requirements. The market is too competitive to allow banks to rest on their innovation laurels, and customer demands are forcing banks to shift gears and refocus their priorities. Much of the competition and innovation are coming from nonbanks that are active in the financial services sector. These companies have discovered opportunities in areas where banks have been slow to react or where they believe consumer interest is strong.

On May 11, 2010, Celent attended FinovateSpring, a conference that brought together 36 financial technology solution vendors. The firms were given seven minutes to showcase their wares via a live demo. A new report, Financial Technology Startups 2010: Giving Banks a Run for Their Money, examines and analyzes 10 financial technology startups that Celent finds most promising. A short profile is provided for each company or product as well as Celent’s impressions.

“Banks need to work on solidifying customer relationships. It is important for banks to understand where the industry is headed, formulate an innovation strategy, and partner with firms who can help strengthen customer relationships and assist in providing a competitive advantage,” says Jacob Jegher, Senior Analyst with Celent’s Banking group and author of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (New York)
Dana Greenstein
dgreenstein@celent.com
Tel.: +1 646 364 8254

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Nick Bockh
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Yumi Nagaoka
ynagaoka@celent.com
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