Business of Fintech
What could happen if large banks really invest in fintech
- If the large banks got serious about fintech, the game could change.
- Moody's report explains just how much impact bank investment could make.
The collective investment capacity of the largest bank is tremendous. Moody's estimates that if the largest banks were to direct 50 percent of their tech spend towards new technologies, the total fintech investment capacity of this group would equal nearly $112 billion over the next five years. The environment for big banks: Over the past decade, banks have had a variety of things to wrestle with:
- low interest rates
- declining product margins
- onerous regulation
- legacy litigation and legal costs
- taxation issues
- raising their efficiency
- providing digital infrastructure
- helping enhance clients' digital experience (important for retaining clients) with payments, cash management, transaction banking and automated trading operations