Fintech deals help banks adapt

Author: Lizzie Meager | Published: 10 Jan 2017

Major global banks are recognising that they need to do business with fintech companies to help them adapt to a changing landscape.

A survey conducted by Mayer Brown found that 100% of respondents expected to purchase a product or service from a fintech company in the next three years.

HSBC has chosen to house its 3000-strong fintech team outside its Canary Wharf HQ
But while M&A may seem the most likely approach, White & Case research found that smaller deals like joint ventures (JV) and minority stake acquisitions will dominate – avoiding both parties putting all their eggs in one basket, and maintaining the cultural differences between the two.

“Banks are traditionally quite conservative and hierarchical, and it can be a struggle for them to move quickly,” said Mayer Brown partner Peter Dickinson.

The seemingly endless high profile reports of the tech problems suffered by major high street banks is,...