Mercator Blog

Banks Need to Prioritize Digital Infrastructure to Retain Corporate Clients and Compete in Coming Years
Date: February 4, 2019
Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service

Financial technology is nothing new since the financial services industry is indeed all about providing services that ensure the safety and liquidity of assets for individuals and for businesses of all sizes. Numerous firms have for decades partnered expertly with financial institutions in supporting the movement, investment, and safeguarding of assets. The new concept "fintech" is underpinned by the rapidly changing and advancing types of technology available, which mirrors the overall disruptive changes underway across global industry and society. These unprecedented capabilities are driving numerous investments in the space as participants make bets on how the industry will look in 10 years and how it will get there. We are now about five years into a spike in fintech investments, with hundreds of start-up firms continuing to find eager funding sources in all major regions.

In the report, Fintech in Corporate Banking: Digitize or Miss the Boat, we cover the latest trends regarding overall global fintech investment and review the regional funding migration. We also discuss the more recent shift away from earlier investment norms that catered to firms dealing in consumer and very small business product segments, to a landscape with more corporate and hybrid solutions. We then analyze the potentially game-changing corporate banking fintech solutions and how they align with near-term and long-term success factors for financial institutions. Finally we focus on key technology initiatives that should be top of mind for banks and address concerns regarding disruption by "big tech."