Strategic Partnerships in Fintech – Thematic Intelligence

Strategic Partnerships in Fintech Thematic Report Overview

Strategic partnerships for fintech companies can include traditional vendor relationships, new niche fintech partners, big tech partners, and/or bank-as-a-service of distribution arrangements with firms outside of financial services. The right partnership can deliver overnight scale via access to new markets or customers or neutralize a disintermediating threat.Moreover, working with proven partners and business models for distribution or as a tech partner will be more attractive.

The ‘strategic partnerships in fintech’ thematic intelligence report gives you an in-depth insight into the strategic partnership theme and showcases how the fintech companies have responded to the impact of this theme on their operations. The report identifies the key market trends that will shape the strategic partnership theme over the coming years and gives an insight into the market players and the competitive landscape within the theme.

Strategic Partnerships in Fintech – Key Trends

The main trends that will shape the strategic partnerships theme over the next 12 to 24 months are classified into three categories: technology trends, macroeconomic trends, and regulatory trends.

• Technology trends: A few of the key technology trends impacting the theme are the sharing economy, growing deployment of generative AI technology, cloud computing, focus on ESG trends, and API management among others.
• Macroeconomic trends: A few of the key macroeconomic trends explained in the report are the need for financial inclusion, increased interest rates, growing SMEs, rising subscription pricing business model, and post-pandemic digital shift among others.
• Regulatory trends: Regtech, BNPL, chargebacks, service level agreements (SLAs), and new lending regulations are part of the regulatory trends that will impact the strategic partnership theme for fintech companies.

Strategic Partnerships - Value Chain Analysis

The strategic partnerships value chain consists of enabling banking technology, banking products and services, banking ecosystems, and nonbanking ecosystems.

Enabling Banking Technology: This includes partnerships within infrastructure centered on more traditional vendor relationships in areas such as core banking, front-end channels, and middleware. Big vendors have dominated the space because big banks want a proven solution that can support them across all jurisdictions and all products immediately. They also spend a lot of time commoditizing their offering so it can be managed by parameters and easily implemented at banks at scale.

Strategic Partnerships Value Chain Analysis

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Leading Financial Services Companies

A few of the interesting collaborations across the partnership categories outlined in the strategic partnerships value chain are:

• Amazon and Barclays
• Apple and PayPal
• Citi and Booking.com
• DBS and GOJEK
• Discovery Bank and Vitality

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Banking Sector Scorecard

At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our power sector scorecard has three screens: A thematic screen, a valuation screen, and a risk screen.

• The thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
• The valuation screen ranks our universe of companies within a sector based on selected valuation metrics.
• The risk screen ranks companies within a particular sector based on overall investment risk.

Banking Sector Scorecard – Thematic Screen

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Scope

• “Partnership” has become a catch-all term for a wide variety of different collaborations, which could be as ‘light’ as a referral agreement with a non-traditional SME lender, to white labeling the underlying credit risk capabilities, to co-development of the overall platform, to outright acquisition.
• The budget category with the highest number of respondents planning a “high” investment in 2023 was fintech partnerships, selected by 51.6% of respondents (out of nine possible options). This underlines how absolutely foundational fintech partnerships are to broader transformation initiatives.
• Gen AI has eclipsed virtually every other technology, with a palpable fear of missing out if incumbent banks cannot identity the most proven early use cases, and deploy them widely across the enterprise to harvest maximum cost reduction.

Key Highlights

• Scientific overview of strategic fintech partnerships.
• Studies of emerging technological trends and their broader impact on the market.
• Analysis of the various military and civilian hypersonic technologies programs currently under development, their history, and projections on future development initiatives.

Reasons to Buy

• Determine potential investment companies based on trend analysis and market projections.
• Gaining an understanding of the market challenges and opportunities surrounding the strategic partnerships in the fintech theme.
• Understand how spending on strategic partnerships in fintech will fit into the overall market and which spending areas are being prioritized.