Douwe Lycklama, Innopay: Corporates would benefit from keeping an active eye on the opportunities with innovative B2B FinTech applications
On September 16, 2015 Total Solutions and Innopay presented the results of a survey among corporates on their views towards Fintech.
Currently, only 14% of corporates make use of B2B FinTech solutions. This is one of the outcomes of our recent survey among large corporates in the Netherlands. Another 70% of the corporates are following the B2B FinTech market, but have not engaged yet. The two main reasons not to engage are:
1) A lack of sufficient knowledge about and insight into the impact of using FinTech solutions.2) Concerns about the continuity of the FinTech company. Only 12.5% of the questioned companies state that they do not want to jeopardise their bank relation.
PSD2 will give a boost to FinTech
The reluctance shown by most companies is likely to disappear in the wake of the approval of the second Payment Service Directive (PSD2), by the end of this year. The European parliament is expected to ratify the revised Directive. This directive will be a disruptive force for the global payment systems by mandating banks to enable their customers to connect to their accounts through third party service providers (Access to Account, or XS2A) and creating a regulatory framework for non-banks. This will inevitably render further financial innovation. New parties will appear and banks will be pressured to innovate their own services and partner with non-bank players.
Early majority to onboard
According to our survey, 14% of the respondents are actually using FinTech solutions. Marketeers have named first users of a product as ‘innovators’. They characterise them as venturous, as they are willing and able to cope with the risks and annoyances common to early-stage products. FinTech continues to develop and, at this stage, FinTech provides a faster and more secure product offering in an increasingly transparent market. Services simply become better, faster and cheaper. Hence, FinTech is clearly ready to be accepted by the ‘early majority’: finance and payment professionals who want to get the most out of the new opportunities.
From ‘nice’ to ‘need’
Only ‘exploring’ FinTech is not enough. Implementing a new payment or billing system is at least a 5-year investment and, in many cases, a 2-year project. For estimating the return on investment, it is essential to know what is happening in the FinTech market, e.g. what are the new offerings, their benefits and acceptance in the market. Also, will the FinTech solution connect well into the existing application and banking landscape within the corporate?
Therefore, knowledge of the FinTech field and awareness of the opportunities are essential to designing any future business strategy. So, for every ambitious corporate. The developments in FinTech are no longer just ‘nice to know’; they have become ‘need to know’.
About Robi Dattatreya
Robi Dattatreya is founder of Total Solutions, specialist in professional services for the Financial Markets and Treasury areas of Corporates and Banks. Total Solutions has offices in Amsterdam and Dubai. As an entrepreneur, Robi has always been a forerunner in recognising and implementing trends and developments which create value.
About Total Solutions
Total Solutions is specialised in Professionals for Financial Market & Treasury, for Banks, Financial Institutions and Corporate Treasury. Total Solutions selects experienced professionals for temporary and permanent assignment, develops specialised trainings and delivers outplacement services. Total Solutions is preferred supplier for all leading financial institutions and the largest supplier for the Financial Markets & Treasury segment in the Netherlands.
About Douwe Lycklama
Douwe Lycklama is founding partner of Innopay. Douwe is one of the thought leaders in ‘networked services’ like e-payments, e-invoicing, e-identity, m-payments, cards and SEPA, shaping breakthrough business and market innovations, standards and schemes. Innopay works for major international financial institutions and corporates, developing products, businesses and strategies. Innopay is member of EPCA, EBA and ECP/EPN.
About Innopay
Innopay is an independent management consultancy firm specialised in digital strategy and transformation. For businesses it is a challenge to stay relevant in the increasing digital world. We help clients by providing strategies and solutions in the field of digital identity, online payments, ecommerce, digital innovation and e-business. Read more articles on the websites blog section.
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