by: Grow VC Group
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When citing the growth of the fintech market, its common to see indicators such as VC investments in the market referenced. However accurate these numbers are, 2014 and 2015 have continued a dramatic increase in the pace of investment. Another factor that’s often harder to quantify, is the adoption among the incumbents and established market participants in the sector but arguably its at least as indicative of a larger trend.

​In the past 12 months, we’ve seen participants embrace these new models, all the way from exchanges such as Nasdaq and OTC Markets, to banks such as Goldman Sachs, JPMorgan, BBVA, these established companies are rolling out their own agendas and plans in financial technology, from leveraging blockchain to deploying open APIs and competing head on in the p2p lending marketplace.

This comes at a while of a large technology overhaul within various financial services organizations, where we’ve had the pleasure of various conversations. An example of which was a recent discussion with a system administrator within a large banking conglomerate who had been brought in to oversee the winding down of existing legacy infrastructure. It was to be a few year project and now eight years later, its still a few year project. That being said, this trend is unmistakeable across the board and sooner or later, it will get completed either smoothly or more likely, through a series of at times critical system failures.

Another anecdote comes from a technical lead from a large financial services institution, in their lending department. In the process of getting details of how their collateralized business debt marketplace should function (the configuration process), our team lead asked whether we could piggy bank on the existing infrastructure for business information as it already exists. They are in fact a prominent lender and the client data they hold is remarkable. Her answer; the existing infrastructure is the last place they would look. With hundreds of legacy Windows 2003 servers haunting in the background, there was literally no way it would be a good use of anyones time.

This paints an interesting picture, one of large scale adoption and validity in the market that is met with the realities of existing infrastructure and its limitations. Navigating these types of particularities is a crucial part of the adoption process and through our work with our clients we have been fortunate to be able to assist in the creation of new ways of delivering services for the modern consumers. The trend and direction is clear, markets always move toward the greatest efficiency. The same is true in financial services. How else is the gap between the suit and tie wealth management banker and the millennial that doesn’t want to speak to a person going to be bridged?

Read the whole article on Crowd Valley Blog.

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Tuesday, May 17th, 2016 at 2:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.