KPMG: Fintech – thriving disruption
The financial technology sector (Fintech) is in the middle of a revolution that is changing the way financial services do business and interact with their customers. A revolution with a positive effect for both business and consumers.
The ‘50 Best Fintech Innovators’ report is full of names that will have little resonance or familiarity with many people – they are not the big finance groups or the Big 4 banks, these firms are often only a few years old with unusual names like the Australian based ‘Pocketbook’ and ‘Nimble’. But these are the disruptors who are leading the Fintech revolution.
Global Fintech financing has grown from less than $930 million for the whole of 2008 to over $1.04 billion in the month of October 2014 alone*. The Fintech innovators are nimble and quick to evolve and don’t carry the legacy systems of many of the traditional large financial institutions. These, rather more cumbersome organisations should be encouraged to take advantage of Fintech innovation and gain impetus from their rapid rise, whether it be more efficient payments technology, perhaps a deeper understanding of the immense data sets the banks hold or a new way of interacting with or identifying customers.
The growth of Fintech will only drive more collaboration, more innovation as well as a healthy degree of competition to fuel the investment of venture capital. The process for selecting the ‘50 Best’ innovators involved a universal search with a list ranking based on 4 factors: total capital raised, rate of capital raising, degree of innovation and sub industry disruption.
Whether on this list or still aspiring to be included, those companies who embrace the disruption, who change and work with the new systems are going to be the successful ones.
The change has come and there is no turning back.The 50 Best Fintech Innovators report is collaborative effort between AWI, KPMG Australia and the FSC and analyses the Fintech space globally. The report highlights those companies globally that are taking advantage of technology and driving disruption within the financial services industry. *http://fintechinnovators.com/