Partnerships among many paths to fintech tipping point


Fintech adoption and revenue have grown quickly and consistently enough to inspire some hand-wringing by banks and on their behalf, and to prompt speculation not just about which company will be the next unicorn, but how finance will react, and how the fintech industry as a whole will develop.

Media coverage seeking the next dominant power — a fintech version of Amazon — may miss an important trend underlying the fintech industry growth. Fintech companies have tended to succeed through partnership and collaboration, reaching new markets and expanding services by finding mutual benefit with another company.

“The fintech industry will only continue to grow, and this will be aided by an influx of collaborations between financial institutions and fintech companies to come,” wrote Alice Chen in a blog post for Due, a digital wallet for payments online.

Changes

Extensive partnerships are so woven into financial systems globally that most consumers think little of having a credit card with the name of a bank and another service provider on it, often Interac, in addition to the card company. 

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