Most of the Fintech start-ups are able to raise capital pretty easily. The venture capital firms, as well as investors, are pouring in dollars in Fintech start-ups. However, many individuals actually worry about the survival of the start-ups. The finance industry consists of behemoths which are reluctant to know it but at the same point of time control a large share of the market.
According to a recent report, for the financial start-ups to survive, they will have to tie up with the industry partners who are established. Only once they tie-up with the industry partners who are established, they will be able to disrupt the market through their collaboration.
According to the report, the main objective of the financial start-ups is to not compete with the traditional players. Only 18% of the goals of both of these types of companies overlap. The rest of the rules are entirely different. This is the reason why such Fintech start-ups can easily tie-up with the established players in the financial industry.
According to world Fintech report 2018, most of the experts believe that the Fintech startups will not survive if they are not able to collaborate with the established financial players. The report was formulated by Capgemini as well as LinkedIn.
According to the report, the Fintech start-ups have made huge strides in some of the niche place in the financial industry like refinancing student loans or managing with through digital assets but in order to go mainstream, they need to collaborate with the established players in the finance space. Only when they are able to create long-term plans with such players, they will be able to survive in the industry. Also, the innovations which they have brought about in their niche can be put to better use by collaborating with the established financial players. This will ensure that they are able to generate more than enough revenue in order to survive in the financial industry.
Only time will tell whether the Fintech start-ups will be able to survive on their own or not. However, at least some of the Fintech start-ups are already looking to tie-up with the financial players so that they are able to get access to the huge market which these established financial players have. This will catapult their business to the next level instantly. It is not a question of if more Fintech start-ups will collaborate but it is the question of when will more Fintech start-ups collaborates with the established financial players.
