Creating Strategic Value through Financial Technology

SECTION Three

Section Three covers a range of topics important to both executive/board members of traditional financial services companies like banks as well as FinTech companies and their partners and investors.

Chapter 9 delves deeply into FinTech partnerships and analyzes the key strategic questions facing both FinTech companies and banks when assessing potential partnerships. This chapter provides insights into how to look at these strategic questions with an eye toward how each strategy could potentially affect the valuation and profitability of banks and FinTech companies. For example, a key question that community banks face is “Should we focus on building our own FinTech platform/tools, selectively partner with Fintech companies, or acquire FinTech companies?” A key strategic question for FinTech companies is “Should we focus on developing partnerships with existing traditional financial services companies or should we focus more on disruption?”

Chapter 10 focuses on issues important to early‐stage FinTech companies and investors/acquirers (including banks) and addresses the following questions: “How do you value an early‐stage FinTech company?,” “How do you value venture capital investments in early‐stage FinTech companies?,” and “When are valuations of early‐stage FinTech companies needed?”

The next two chapters focus on key issues facing more mature FinTech companies and their bank partners/potential acquirers and look at two potential strategies. Chapter 11 focuses ...