In 2019, Fintech began to bridge the gap between financial services (FS) and technology, media and telecommunications companies (TMT), proving that businesses are now merging lanes in the race to attract and retain customers. This fusion is proving so transformative that Lloyd Blankfein, CEO of Goldman Sachs announced in 2017, “We are a technology firm.”
Similarly, Micheal Corbat, CEO of Citibank, stated, “In many ways, we see ourselves as a technology company with a banking license.”
That is two CEOs, from two of the largest financial institutions in the world, putting their technology profiles first. That is an accurate representation of the priority that fintech now enjoys across the FS and TMT sectors, and while the megabanks have been investing for years, and the neobanks have proven the scope of what might be accomplished, there are still too many small to midsize businesses that have yet to incorporate fintech-driven strategies—and these are the companies that will fall behind in the next few years.
The 2019 Global Fintech Report published by PWC concluded:
Companies that have embraced fintech are reshaping the marketplace, and those that haven’t are being left behind. In fact, three-quarters of the FS and TMT executives we surveyed said they’re stepping up their fintech investment in the next two years. More than 90% are very or somewhat confident that fintech will deliver revenue growth over the next two years.
In financial services, this growth is calculated on the ability to deliver faster and more efficient services. In the technology, media and telecommunications sphere, fintech related growth is based on building client-centric services that showcase personalization, ‘extreme convenience’, and positive user experience.
In its report, PMC notes:
We think the winning companies will be those that not only embrace fintech-driven business models but figure out how to navigate wider and more crowded lanes with approaches that make the most of FS and TMT’s combined strengths.
While the need is apparent, introducing fintech solutions or products can be difficult for small and midsize businesses. The technology can be complicated. The regulations can be challenging to navigate, and legacy technology may add to the complexity of a project. In addition to these factors, FS executives have the same concerns as they do with other custom software engineering projects: time, budget and the delivery of a product that meets all of its delivery criteria.
Using EndPoint Modeling, we’ve helped hundreds of businesses achieve their custom software goals with projects that include: AI, Big Data, Chatbots, RoboAdvisors, Blockchain, Cyber Security, and Robotic Process Automation.
Our team includes data scientists, as well as experienced software engineers, across multiple regions, to ensure that you get the expert assistance you need in a way that can help you to manage costs and guarantee specifications. The EndPoint modeling workshop offers a structured process to define your project and gain a consensus between all of your stakeholders before the coding begins, with the option of staff augmentation or deployment assistance so that you can rest assured we will be there when you need us.
Would you like to know more about what EndPoint Modeling can do for your next fintech project? Would you like to know more about the fintech projects we have built and what impact they have had for our clients? We invite you to contact us or leave a message in the comments. We love to discuss our projects.