GlobalData : Expansion of FinTech in Private Banking

FinTech companies are beginning to make their mark on the global financial services market

Bartosz Golba, Head of Wealth Management at research and analysis firm GlobalData, explains how private banks' approach to technology and innovation has changed. 'More than half of Western European wealth managers surveyed by GlobalData in 2015 did not have a mobile or tablet application at all,' says Golba. 'Nowadays, digitalisation is at the top of most competitors' agendas. Being challenged by FinTech firms, incumbents have no choice but to respond.'

So far banks and wealth managers maintain their dominance of investment management services through a combination of inertia, brand trust, and scale. Yet FinTech companies have witnessed dramatic impact not only on banking, but on the wider financial services industry.

'FinTech companies know the digital space well. It is their natural habitat, and their products easily resonate with younger tech-savvy generation. While private banks currently prefer to work with baby boomers, they are facing the largest intergenerational wealth transfer in history. Collaboration with FinTechs will benefit incumbents in a number of ways: from leveraging technology to find operational efficiencies to better understanding future generations.' remarks Golba.

In his presentation on 'Digital private banking: not just for millionaires of today' at iCEE.fest in Bucharest, Bartosz Golba will explore how high net worth and emerging affluent individuals' attitudes towards investing differ. GlobalData's Wealth Management teams have been running surveys in both segments for years, exploring evolving trends in consumers' and investors' behaviours. The presentation will look at case studies of traditional players who have responded to these trends, often by partnerships with FinTech firms.

As FinTech is coming to define the modern financial services industry, the crowded nature of the market means that pinpointing the best innovations to invest in or partner with is difficult. To find the next market disruptor, or the next essential partner, requires insight into trends in FinTech investment across the globe. GlobalData's new Smart Money Analytics tracks 100 of the top investors and over 1,000 funding rounds to pinpoint where the smart money is being invested in FinTech. This insight, combined with tracking and profiling of the alumni of the top incubators and accelerators worldwide, provides GlobalData's FinTech subscribers with the information needed to stay ahead of the competition.

• Information based on GlobalData's upcoming presentation titled 'Digital private banking: not just for millionaires of today' at the iCEEfest - Bucharest where we discuss how wealth management industry cab leverage FinTech solutions to answer changing needs of its clients.