In a new report, Santander InnoVentures, the megabank’s venture capital fund, argues that banks and fintech startups need to collaborate in order to “reboot” the global financial services industry and trigger the ‘Fintech 2.0’ revolution.
Unlike the first generation of fintech pioneers that are limited to relatively simple propositions such as digital wallets and peer-to-peer lending, ‘Fintech 2.0’ will deliver fundamental changes to the infrastructure and processes at the core of the financial services industry, according to a new report from Santander InnoVenture, co-authored with Oliver Wyman and Anthemis Group.
The document, called ‘The Fintech 2.0 Paper: rebooting financial services’, reads:
“Fintech 2.0 represents a far broader opportunity to re-engineer the infrastructure and processes of the global financial services industry, in which the top 300 banks command a revenue pool worth $3.8 trillion.”
Released at MoneyConf, the manifesto is a call to action on banks and fintech startups to collaborate with “each providing the other with what it now lacks” in order to realize the opportunity of Fintech 2.0.
“The strengths and weaknesses of both banks and fintechs mean that both will often do better by cooperating rather than by competing. New digital businesses must either grow quickly or