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. This 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.
