TheFutureofFintechandBanking:Digitallydisruptedorreimagined?22Globalinvestmentinfintechventurestripledto$12.21billionin201422014$12.21bn2013$4.05bnInvestmentinfinancial-technology(fintech)companiesgrewby201%globallyin2014,comparedto63%growthinoverallventure-capitalinvestments,confirmingthissectorasahotticket.Expectationsfornewdigitalstart-upsintheindustrycontinuetoswell,withtheamountofmoneyflowingintofirstroundinvestmentsalonegrowingby48%1.Itisclearthatthedigitalrevolutioninfinancialservicesisunderway,buttheimpactoncurrentbankingplayersisnotaswelldefined.Digitaldisruptionhasthepotentialtoshrinktheroleandrelevanceoftoday’sbanks,andsimultaneouslyhelpthemcreatebetter,faster,cheaperservicesthatmakethemanevenmoreessentialpartofeverydaylifeforinstitutionsandindividuals.Tomaketheimpactpositive,banksareacknowledgingthattheyneedtoshakethemselvesoutofinstitutionalcomplacencyandExecutiveSummaryrecognisethatmerelynavigatingwavesofregulationandwaitingforinterestratestorisewon’tprotectthemfromobsolescence.ThisAccenturereportbringstogethertheviewsof25influentialfinancialservicesexecutivesinvolvedininnovation,andmapsouttheactivitiesthatestablishedplayershaveidentifiedasnecessarytoallowthemtodisrupttheirownbusinessmodelratherthanwatchchallengermodelsdisintermediatethem.Openness,CollaborationandInvestmentarethecriticalthemesthatemergeforexistingbankingplayersiftheyaretobenefitfromgrowthdrivenbynewservicesandproductivity.Banksalsorecognisetwootherfundamentalstepstoensuringthattheyarenetwinnersfromdigitaldisruption:successfullydealingwiththeissueoflegacytechnologyandmanagingalargeinfusionofnewtalent.Embracingthesethemesandcreatingtherightfoundationscreateschallengestotherateofchangeandapproachtoriskthatarehard-wiredintothewaybankscurrentlyadapttoinnovation.Thishandsanadvantagetochallengerswhoonlyhitregulators’radaroncetheirnewbusinessmodelshavefoundwaystocherry-pickservicesandcustomers.Banksareanticipatingthisbycreatingnewbusinesseswithintheirexistingstructuresthatadaptandcollabo...
