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Data for today’s episode is provided by Mercator Advisory Group’s report –Use of Financial Technology to Accelerate in Corporate Banking
Nothing Has Affected Corporate Banking More Than Fintech, except Maybe COVID-19:
- Over the last 10 years, investors have poured over $191 billion into banking related technologies.
- Fintech revenues are forecasted to have a compound annual growth rate of 10.6% over the next 10 years.
- A 10.6% CAGR is about 3 times faster than the rate for the broader financial sector and is forecasted to reach $500 billion in 2030.
- Mercator Advisory Group interviews have unanimously agreed that adoption of digital systems will accelerate due to COVID-19.
- Corporate inertia was the chief obstacle to digitalization, but is now being overcome by necessity.
- Mercator’s Hierarchy of Tech Trends in Corporate Banking: AI, API’s, Digital Systems, Cloud, Distributed Ledger.
The fintech revolution is just getting started. The complicated landscape of corporate banking systems and operations will transition more rapidly to digital as competitive realities demand change.