Financial Technology Startups: Giving Banks a Run for Their Money
Financial technology startups are giving banks a run for their money. They are providing stiff competition to financial services firms and taking an innovative stance in the consumer market.
The Internet is in a state of perpetual transition. The ever-evolving nature of this channel has banks careening in all directions to keep up with 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 refocus their priorities. Much of the competition and innovation is 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 April 28, 2009 Celent attended FinovateStartup09, which brought together 56 financial technology startups. Thirty-six of the startups were given seven minutes to showcase their wares via a live demo. A new report, Financial Technology Startups: Giving Banks a Run for Their Money, examines and analyzes 12 financial technology startups that Celent finds most promising. A short profile is provided for each company/product as well as Celent’s impressions.
"Banks need to work on solidifying customer relationships, particularly in these challenging times. 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.