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White Paper

The ABC of Fintech: Acquisitions, Brexit and Collaboration

November 2016
Mayer Brown White Paper
Mayer Brown is pleased to present The ABC of Fintech: Acquisitions, Brexit and Collaboration, in association with Mergermarket.

The financial services sector has always been at the forefront of innovation, from new products and services to developing new markets and harnessing new technologies. The emergence of fintech presents interesting and potentially long-lasting opportunities.

The study, which canvassed the opinions of 120 senior executives at UK-headquartered financial services and fintech companies, looks at how the two are planning to work together in the coming years, and whether regulation and geopolitical volatility will hold them back.

Key highlights include:

Financial services and fintech firms are set to become close friends in the next three years: 49% of financial services firms say they expect to engage in a joint venture with a fintech firm in the next three years, while 26% say they expect to acquire a fintech firm over the same period. And 100% of financial services respondents expect to purchase a product or commission work from a fintech company over the next three years.

Most financial services and fintech firms favour some form of self-regulation:
60% of fintech respondents say a self-regulated environment with limited regulatory oversight is ideal, while 76% of financial services respondents think clear regulatory oversight with some self-regulation is best. 33% of respondents say Germany is the European country with regulation most conducive to growth in the fintech industry while 31% point to the UK.

Brexit is causing some uncertainty in fintech and making it difficult to find the right talent: there are signs of growing pessimism about the Brexit effect in the report, with 60% of financial services and 76% of fintech respondents believing this uncertainty will slow down the development of the fintech market. 78% of fintech and 76% of financial services respondents say attracting and retaining talented employees from the EU has become more difficult since the referendum.

The ABC of Fintech forms part of Mayer Brown's focus on the digitisation of business called Lexicon of Next, which provides a focal point for businesses seeking to understand how their opportunities and risks are changing in a transformed business world.

Authors

  • Mark A. Prinsley
    T +44 20 3130 3900
  • Elizabeth (Liz) Espín Stern
    T +1 202 263 3825
  • David L. Beam
    T +1 202 263 3375
  • Rod Brown
    Partner
    T +65 6327 0636
  • Oliver Yaros
    T +44 20 3130 3698
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