Financial facilitators propel the expansion of built-in financial services
In the rapidly evolving financial landscape, partnerships are playing a pivotal role in driving the growth of fintech enablers. This was highlighted in a recent paper titled "Fintech partnerships and the technologies that enable them," jointly published by Amazon Web Services (AWS) Financial Services, Innovate Finance, and Finch Capital.
The paper underscores the critical role of collaboration in the fast-paced fintech industry. As competition intensifies and bigtechs enter the space, partnerships have become essential to stay ahead in the ever-so-crowded market.
One such success story is Nium, a B2B payments platform that recently raised a US$200+ million Series D funding round in July, reaching unicorn status. Partnerships enable non-bank providers and large, established brands to start offering financial services through embedded finance. Companies like Trade Republic, Mynt, TMRW, and various other fast-growing consumer finance companies and digital banks are powered by these providers.
Klarna, the world's leading buy now, pay later (BNPL) platform, is a relevant enabler in this area. Trends such as embedded finance and banking-as-a-service (BaaS) have emerged due to the growth of fintech enablers.
Fintech enablers provide cutting-edge technologies to clients for fintech service offerings. These partners facilitate services such as AI-driven credit tools, blockchain lending, digital payments, private credit investments, and integrated modular banking solutions that reduce operational costs and enhance financial inclusion for underserved segments like MSMEs and low-income groups.
Partnerships also allow for access to new or improved technology capabilities and help improve digital customer experience. So far this year, investors have poured US$4.25 billion into embedded finance startups, almost three times the amount of 2020.
The most important partners of fintech enablers in Singapore in recent years include banks, regulators, and strategic investors such as Tin Men Capital, Getz, Inc., and Woodside Holdings Investment Management. Key fintech enablers like Atlas Consolidated provide financial services including open banking, Banking-as-a-Service platforms (HugoHub), digital wealth and savings apps (Hugosave), and digital banking licenses (HugoBank).
Open, a neobanking platform focused on small and medium-sized enterprises, raised US$100 million in Series C funding earlier this month. Venture capital firms are investing billions into startups in the fintech enabler space.
The featured image for this article is a technology photo created by rawpixel.com - www.freepik.com.
In conclusion, the growth of fintech enablers and the importance of partnerships in the financial industry cannot be overstated. As we move forward, it is expected that these trends will continue to shape the future of finance.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
