Following on from our previous blog featuring the Financial Times article on why they felt the FinTech hype is to be believed, global firm McKinsey & Company expand on how start-ups will benefit incumbents, not just disrupt them.
Much of the media coverage surrounding FinTechs has focussed on the negative impacts it could have for established companies and practices in the financial services industry. However, McKinsey’s research suggests that the number of opportunities for incumbent organisations to collaborate with start-ups to develop better, more efficient practices is growing. In fact, as little as 12% of the FinTech companies could be said to be truly disruptive to existing business models.
In light of research carried out by the firm it becomes clear that, while true for financial services, the companies who are set to most benefit from FinTech work in corporate and investment banking. Although still predominately focussed on B2C, there is a larger portion of FinTech suppliers with a B2B offering (47%) compared to previous studies.
Read the full article below:
While true for other financial services, it's most striking in corporate and investment banking. Fintechs, the name given to start-ups and more-established companies using technology to make financial services more effective and efficient, have lit up the global banking landscape over the past three to four years.
Highlighted in the report is the fact that Software as a Service (SaaS) is the largest proportion of FinTech (28.4%), followed by big data analytics tools (22.8%).
Encompass Confirm and Encompass Assess are two examples of SaaS products specifically designed to benefit the financial services sector and we are proud to have successful collaborations with a number of well-established firms. Our products are aimed at facilitating the existing, conventional processes within the sector, and streamlining your processes to boost profits. If you would like to find out more about the story behind Encompass, how we started as a SaaS FinTech company and the principals behind us, check out our Company Information Page.
Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.
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