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More start-ups want to work with existing financial services businesses. Growing understanding of each other’s cultures and working practices has seen FinTech companies and incumbents work together much more frequently. Start-ups offering a business-to-business proposition accounted for 56% of applications to Startupbootcamp last year and for 71% of UK funding; their focus is very often on improving incumbent’s internal operating processes.
The most successful artificial intelligence and machine learning advances put the customer at the centre. FinTech companies pioneering these technologies have moved towards a design-led approach. The increasing volume of open source material available to start-ups has enabled them to focus on technological advances from the perspective of specific customer problems.
Serving the unserved has become a key priority for start-ups globally. FinTech companies are aware and concerned about the unfairness and opportunities that arise from a huge number of people that are not served by the financial service sector. More than one in 10 applications to Startupbootcamp FinTech 2016 (12%) came from start-ups aiming to tackle issues of financial inclusion and wellbeing. Traditionally a focus in developing countries, UK and European FinTech companies are increasingly engaged with these issues too.
Great change has taken place in the collaboration between start-ups and incumbents, but these are only the first steps as more work to be done. Much progress has been made as FinTech companies and incumbents have got to know each other better, but the search for the perfect collaboration model continues. Up till now most projects end on proof-of-concept or pilot studies. The next phase of growth is to turn more of these into real business. Too many corporates are struggling to measure success in FinTech.
Steve Davies - FinTech EMEA Leader
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