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How Startups Changed the Financial Landscape

November 2019
Mikael Stelander
Manos Panorios
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A Close Look Into Executive Search in Today’s Fintech Era

According to a 2018 KPMG report, “Global fintech investment doubled to USD 111.8 billion in 2018.“ Not only were investments high, but there were a significant number of blockbuster and high-profile deals. And, in 2019, Singapore raised a record USD 735 million in the first nine months of the year in fintech deals alone, marking a 69% increase from the same time period the previous year.

Today’s digital era took root several decades ago, but we are only now taking advantage of its many blessings. The global financial landscape is reshaping not only our daily lives and habits, but also many major industries including medicine and jurisdiction, as well as the economy.

Economic systems around the world consist of tried-and-true models that have been established for generations. Technology has, however, meddled with these systems considerably, making it easier for consumers and clients to manage their own money in any financial institution and from any location.

This new-found appetite for simplicity and convenience has led to the birth of fintech, disrupting otherwise complex, manual systems of financial handling. Fintech systems allow clients and consumers to extend, receive, and invest their funds easily. And their use is growing exponentially.

Today’s startups have proven their ability to successfully cater to all of our consumer needs. And their ties to finance and banking play a large role in this success. Currently, there are about 61 fintech startups operating in 14 countries, actively bringing us closer to the financial systems of the future, CB Insights reports.

There are many trending technologies driving fintech innovation, the most important being AI (artificial intelligence), RPA (robotic process automation), digital transformation, blockchain, and smart contracting.

All of these technologies — the future of fintech — rely solely on one critical resource: driven, educated, and innovative experts willing to put in the effort needed to change the financial landscape of the world.

Major companies rely on professional executive search firms to seek and assess top-level executives who will apply their knowledge, innovation, and overall drive to boost e-finance and related software to unseen heights. Most of the time, this precise means of recruiting and equipping talent is the reason for a startup or company’s exponential growth and enviable performance. These companies are responsible for some 500 initial forms of digital payment, including networks and wallets. Such payments are made to cut trips to the bank with mere taps on one’s mobile device.

Fintech is in constant need of such talent. Australia is one example: Business Insider disclosed that Australia lacks a large number of experts. And while the country is very aware of the issue, its companies do their best to welcome people from all over the world. Australian fintech executive search and talent management agencies often visit other countries to find people willing to pursue a career there. Recently, they have been particularly targeting the British to offer new employment opportunities in the wake of Brexit.

Below you will find a few key statistics regarding how startups are disrupting the financial system around the world:

●     The global adoption rate of fintech is about 64%.

●     Fintech unicorns are private companies worth a billion and more. Currently, there are 39 of these, valued at more than $147.37 billion.

●     The annual global investment in financial technology jumped exponentially, from $1.2 billion in 2008 to $12.2 billion in 2014.

●     China, India, and Russia are the world’s leading economies when it comes to fintech-market adoption.

●     The main reason for customer acceptance of these technologies includes more attractive rates and fees, overall online experience and functionality, and simplicity and quality of setting up and using the services and being able to access different products/services.

●     1.7 billion adult consumers still have no bank account; yet, since 20s11, roughly 1.2 billion have gained access to various banking services and products.

●     These 1.7 billion could easily make the global economy richer for an additional $600 billion once they start using fintech services.

Global fintech startups are growing in speed and stamina. And, in order for them to continue improving user experiences, they need to maintain a superior team of people. These people need first-class C-suite leaders including Chief Executive Officers, Chief Financial Officers, Chief Operating Officers, Chief Information Officers, and other CxOs.

Tech-savvy talent, combined with top leadership, has continued changing the way our global economy functions. This has, in turn, created a significant disruption in the financial ecosystem.

Approximately 96% of all consumers worldwide are aware of these fintech advances, and yet just over 64% take advantage of them. Three in four consumers use financial technologies for fund transfers, and half of all consumers use them for insurance.

Although fintech startups did not receive much trust from investors early on, the past few years have seen greater investments. In fact, during 2018, there was an estimated $52.5 billion in investments in the United States alone, primarily in New York and Massachusetts. European investments followed, specifically the United Kingdom, with $34.2 billion. And Asia took third place, with $22.7 billion.

Projections for the next decade of fintech are incredible; the growth has no intention of stopping. Jennifer Pryce of Forbes said that if more CEOs of the world’s larger banks sat down and listened to what fintech innovation has to offer, they would be able to focus more on customers’ needs and have an even better idea of how to move forward.

The bottom line is that fintech will not stop disrupting the financial world. As technology continues to advance, we can see fintech getting better and better. This disruption comes at everyone’s gain, with more jobs created, more experts educated to lead the world of fintech, and overall more ways for users everywhere to extend their funds.

This colorful and informative infographic[1] displays everything you need to know for a solid understanding of the world of fintech. This information is not only useful for financial experts but for other C-suite leaders as well. Check out the infographic below to learn more.

 

About the authors

Manos Panorios is a Partner in the Athens office and the Global Practice Group leader for Financial Services at Stanton Chase.

Mikael Stelander is a Partner in the Helsinki office and Global Sector leader for Start-Ups at Stanton Chase.

[1] Previously published here: https://fortunly.com/infographics/how-startups-disrupt-the-finance-ecosystem-infographic/

See the infographic.

 










 

 

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