Fintech companies are weighing up the benefits of obtaining
a banking licence in the current political climate or going one
step further and merging with a bank.
This would contrast with previous trends, as established
banks such as Goldman Sachs and Societe Generale both acquiring
more than one fintech start up in 2018.
"The first-mover fintechs have got firepower from funding
rounds, built scale and tested their technology," said White & Case partner Hyder Jumbahoy.
"The next logical step is to start bringing their service
Jumbahoy suggested one way of doing that would be joint
venture partnerships with service provider banks. "The next
logical step, if you want a banking licence and you can afford
it, is to buy an existing bank," he added.
Players in the fintech industry are divided over
whether companies should begin buying their
banks;Some fintechs are "effectively new
banks" without the...