The evolution of business-to-business FinTech: What the future holds

Abstract

This paper explores the evolving landscape and drivers behind the growth of business-to-business (B2B) FinTech. In this respect, the paper discusses the role of such drivers as increasing regulation, digitalisation, the drive for efficiency, and the general lack of agility among incumbent financial services providers to respond to changing corporate needs and expectations.The paper also discusses how these factors have driven financial institutions to invest in and partner with specialist FinTechs, and consequently, elevated investment levels and investor interest in the B2B FinTech space. The paper describes how these trends are likely to develop in the future and how it will become ever more important for incumbent financial services providers to partner with FinTechs to offer niche and tailored solutions to remain competitive. This paper also discusses what the future will look like and how the landscape will look significantly more intricate in the future. Consequently, the authors discuss how consolidation within the B2B FinTech space is expected to continue, while the emergence of tech giants in the financial services space represents the potential for a TechFin future.