Great article from Let's Talk Payments on how incumbent financial services players are making plays in fintech.
Despite relatively low levels of M&A activity, the incumbents (e.g. banks, payment processors) have made multiple investments into emerging fintech companies. The wealth managers (e.g. BlackRock acquiring WealthFront) and insurers (e.g. AXA and MassMutual investing into PolicyGenius) should also be considered.
A key future theme in the sector will be consolidation. With more incumbents closely monitoring the space, a significant rise in M&A activity is likely over the next couple of years.
Much has been said about banks and FinTech. But the FinTech-focused community must know how the non-bank incumbents are dealing with the FinTech explosion and trying to be a part of it by reaching out to FinTech developers, FinTech entrepreneurs and FinTech influencers. “Like banks, even the non-banks in the FinTech universe are facing heat from startups but the smart ones are not going into their cave. Rather, they are converting the threat into an opportunity,” said Amit Goel, Co-founder at LTP and one of the top 100 influencers in FinTech.