Financial Technology Startups: Giving Banks a Run for Their Money

by Jacob Jegher, July 2, 2009
Product Trends/ Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Financial technology startups are giving banks a run for their money. They are providing stiff competition to financial services firms and taking an innovative stance in the consumer market.

The Internet is in a state of perpetual transition. The ever-evolving nature of this channel has banks careening in all directions to keep up with technology, shifting business models, and customer demands and requirements. The market is too competitive to allow banks to rest on their innovation laurels, and customer demands are forcing banks to refocus their priorities. Much of the competition and innovation is coming from nonbanks that are active in the financial services sector. These companies have discovered opportunities in areas where banks have been slow to react or where they believe consumer interest is strong.

On April 28, 2009 Celent attended FinovateStartup09, which brought together 56 financial technology startups. Thirty-six of the startups were given seven minutes to showcase their wares via a live demo. A new report, Financial Technology Startups: Giving Banks a Run for Their Money, examines and analyzes 12 financial technology startups that Celent finds most promising. A short profile is provided for each company/product as well as Celent’s impressions.

"Banks need to work on solidifying customer relationships, particularly in these challenging times. It is important for banks to understand where the industry is headed, formulate an innovation strategy, and partner with firms who can help strengthen customer relationships and assist in providing a competitive advantage," says Jacob Jegher, senior analyst with Celent's Banking group and author of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

Introduction

The Standout Startups

Personal Financial Management

Miscellaneous Financial Solutions

Lending/Credit

Security

Payments/Transactional

Conclusion

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