If You Can’t Beat The Fintechs, Join Them

According to joint research by KPMG and CB Insights, with eight investments, Citigroup ranks high among the banks that invested the most in Fintech startups. The report, however, also highlights that investments in Europe, as a result of the Brexit vote, dropped from 400 million U.S. dollars in Q2 2016 to 200 million U.S. dollars in Q3.

While the majority of banking executives consider Fintech firms partners, a recent consumer survey conducted by Statista shows that the majority of consumers surveyed have never heard of Fintechs. This will most likely change as the European Union’s Payment Services Directive (PSD2) which comes into force in January 2018 forces banks to provide account information to third parties via APIs, thereby reducing the barriers for Fintechs.