Editor’s Note: What is true in the UK also holds true in the US.
From: LSE Business Review
Some suggested new-entry strategies to ensure your start-up is fully compliant in the UK
by Gerhard Grueter
Fintech firms may have many advantages over established banks in entering the new market of digital banking. For example many well-known banks have outdated and cumbersome computer systems while new start-ups can start from scratch and develop new and fast systems in only months. The question for large financial institutions is whether to buy firms or build the new start-ups internally.
To overcome these shortcomings, a growing trend is for existing financial services firms to acquire fintech firms. For example, the Spanish multinational banking group BBVA has purchased a number of start-ups, such as a 29.5 per cent stake in Atom, the UK’s first mobile-only bank. Barclays Bank has developed an accelerator program which provides funding and infrastructure to new start-ups. Acquisitions remain a dominant theme in the fight for market share and new technologies.
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