Established financial institutions like Goldman Sachs and Euronext, the pan-European exchange are finding ways to utilise the technology being developed by financial technology companies and partnering with them, rather than falling behind the times.
When financial technology companies began to make waves in the industry, other, more established financial institutions avoided contact with them. Here at fintechwebnews.co.uk, we speculate the reason for this is mostly because they wanted to avoid the new technologies that would potentially threaten to lessen their power in the banking, financing, loaning and investment industries.
Everyone wins, consumers and the industry
A huge advantage that fintechs have is their ability to change and evolve rapidly. They can be on top of the latest technology and start utilising it faster than any large institution is able to do on their own.
A lot of innovation from the fintech world has benefited consumers around the world, providing solutions to problems that everyday consumers have faced for years. We have reported at fintechwebnews.co.uk on such great financial technology companies such as PayPal and Uber.
These companies have changed the way that consumers live their lives; for example allowing people to have access to an online wallet to pay for purchases anywhere in the world. Fintech companies can affect so many parts of the consumer world, such as protecting consumers’ data online with artificial intelligence fraud detection and even providing easy, more flexible and manageable loans.
Fintech and big banking’s co-dependant relationship
The banking world has been changed forever as a result of partnerships with cutting-edge financial technology companies. Traders on both the buy-side and the sell-side have benefited from technologies that help them to make more profitable trades by displaying huge amounts of information in an understandable way.
In this relationship between banks and fintechs, the latter are receiving large cash injections to develop software and systems for banks. Finance giant Goldman Sachs has been investing large amounts in the financial technology sector, racking up $570 million in investments since 2012.
Fintechwebnews.co.uk will be reporting on more exciting developments in the world of financial technology regularly, so watch this space.