According to a recent report from Accenture, in 2014, global investment within the Fintech sector tripled to £8.36 billion. In short, the financial sector is experiencing a “digital revolution".
Notwithstanding the fact that some startups pose direct threats to traditional business models with the financial sector, increasingly, Fintech companies that crack tough problems such as those related to security and fraud prevention find willing partners in the form of global banks.
Global Banking: Fraud, Security, and Compliance-related Challenges at Every Turn
Today’s financial institutions face a dizzying array of threats, including complex fraud schemes involving the theft money and data by sophisticated cyber criminals, and the need to satisfy demanding regulatory requirements – both within their home markets and overseas.
Thankfully, with the emergence of the Fintech sector, traditional financial institutions have access to many of the tools that they need to tackle these complex problems. How are Fintech companies able to help a global banks tackle such important issues?
- They embed innovation as a core competency: Fintech companies innovate at an incredible rate. In fact, that is one of the primary reasons for the sector’s success to date. Large banks typically do not possess the infrastructure and culture to support innovation at a similar rate to that which takes place within the Fintech sector.
- They possess a deep understanding of the problems facing financial institutions: A Fintech’s leadership team often includes former executives from within the financial services sector as well as other verticals that face similar challenges. As a result, the Fintech’s executive team possesses real-world experience of the problems facing the industry and an appreciation of the challenges that most banks face in driving change with their operations.
- They develop cost-effective solutions: Due to their limited size, Fintech companies do not maintain significant infrastructure costs that they must pass on to customers. Further, in order to establish a competitive footing, Fintech companies must employ a laser-like focus on developing cost-effective solutions that produce sustainable results.
Whilst the Fintech sector encompasses a broad range of startups that tackle a long list of problems, at their core, Fintech companies help banks rethink their business models, embrace innovation and change, and solve complex problems.
As a member of the Fintech community, Contego provides financial institutions with a broad range of services, including access to data sources to support the customer onboarding process, real-time identity verification, and tools to discover and visualise fraud-related data. In fact, Contego’s ability to conduct comprehensive checks on people, companies, and the identity documents recently resulted in Accenture selecting the company to participate in the 2016 Fintech Innovation Lab.
Contego’s participation in the lab recognises the company’s performance to date, and more importantly, its potential to help global banks adapt and meet the challenges of the rapidly changing financial services marketplace.
Learn more about Contego’s services.