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Do banks have what it takes to be start-up compatible?

BearingPoint. Institute Get tech, go! Can banks grasp the tech start-up opportunity? Technology start-ups offer high-growth potential for banks seeking new sources of revenue but they will need a clear engagement strategy to succeed Tech start-ups can be rewarding but demanding Structured/syndicated financing • International cash management solutions • IPO • Trade sale/M&A Tech start-ups Expert/individual Medium/large corporates • Investment financing • Cash management • Trade finance Advanced Product • Risk management and process complexity Financing FX-hedging • Enhanced payment solutions Extended Small businesses • Accounts • Cards Basics Simple payment solutions Foundation Growth Maturity Banks are finding new ways to engage with these firms Level 1 Open collaboration Level 2 Partnerships Level 3 Financial investment Level 4 Private incubators Involvement is through open collaboration, organising events or challenges around specific needs or topics. In October 2014, Société Générale hosted a 'hackathon' to At the next level, banks can initiate partnerships combining their experience with ideas from start-ups to deliver mutually beneficial offers to the Financial involvement through corporate investment funds, joint ventures or other shareholding opportunities. BBVA Ventures, for instance, seeks strategic opportunities that can support banks' innovation agenda – investing in disruptive businesses in the areas of financial Banks such as Crédit Agricole and Commerzbank have launched private business incubators in Paris and Frankfurt am Main, respectively, to support the potential of nascent developments and secure future strategic advantages. develop ideas for apps tied to banking and the internet of things – resulting in 30 project proposals. market. technologies, big data or e-commerce. INVESTMENT The benefits of engagement grow over time BANK/SHAREHOLDER • Income growth • Income improvement • Increase in efficiency Disposal of resources • Long-term customer relationship • Increase in customers • Replenishment of client base through P2P-marketing • New income sources established • Long-term income growth through market proximity and stronger image • Introduction of new solutions adding value for bank and clients Expansion of concept to other locations Development of new products VALUE TIME • Established partner/player in start-up community • Increased perception by media and politics • Better overall image • Need-based advisory • Increased client satisfaction • Recommendation Established market leader for and processes Stronger cooperation start-up banking • Greater awareness and perception for new investments and projects Stronger focus CLIENT/MARKET Start-up revolution: a brave new world of bank business BEIO06-39-COB-IN

Do banks have what it takes to be start-up compatible?

shared by BEI on Jun 19
High-potential, scalable technology start-ups are increasingly on the radar of banks struggling to make headway with historic business models; but do banks have what it takes to be start-up compatible?


BearingPoint Institute



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