Fintech startups are opening up to collaborations with other players in the economic system. To make partnerships fruitful, however, it is necessary to dialogue and come to terms with each other.
Fintech startups have begun to dialogue with other players in the economic system, with the aim of establishing mutually beneficial partnerships. This is what emerges from the Fintech Waves 2023 report, created by EY and the Fintech District.
The report shows that starting from 2021, 90% of the startup surveyed have started collaborations that have allowed them to grow. The sample of companies that participated in the survey (between August and December 2022) consists of about 100 companies belonging to the fintech world, which have their headquarters in Italy or are operational in the area.
With whom and why do fintech startups collaborate
As of 2021, fintech startups are partnering with a multitude of players. In particular, the report showed that 65% of the companies have started a partnership with established operators in the financial sector (banks and insurance companies); the 58% with other fintechs; the 41% with non-financial startups; and finally the 25% with operators from other sectors.
The reasons for starting collaborations were multiple. The ones that emerged as the most significant are:
- the creation of new products or services;
- purposes of marketing;
- increase of turnover;
- search for specific skills and technologies;
- expansion of the clientele.
What prompted the startup to collaborate with other players in the economic system was mainly the desire to place new products or services on the market; as well as that of access skills or technologies that they did not have internally.
The startups that have started a collaboration with other fintechs or with other startups to have new skills available are 31%.
Startups and collaborations: what were the difficulties encountered
According to the report, despite the percentage of collaborations having become very numerous, the difficulties encountered were not few and this was reflected in the level of satisfaction assigned to the partnerships.
The average mark assigned by startups to the collaborations they have established was 7.5/10, a good number, but one which tended to be higher. More than the vote itself, it is necessary to understand what are the causes that led to this figure falling.
Many fintech startups said they had encountered integration challenges, in particular:
- in process integration (36%);
- in the integration of technologies (33%);
- in the contractual integration (24%).
Other issues that arose were:
- poor cultural adaptation (14%);
- the risk of "cannibalization" (12%);
- the lack of a common strategy (11%).
The first three difficulties are the result of a objective difficulty which requires careful planning of the work to be done by all the entities involved. Solving integration problems is not simple, as this may imply the need to review the entire internal structure of the company, however it is necessary to ensure that the collaboration is fruitful.
As for the other three difficulties, solving them is not impossible since, unlike the previous ones, they concern a more human sphere. To avoid the risk of cannibalization and establish a common strategy, it is essential to sit down at a table and try to mediate, because without a common vision it is not possible to achieve optimal results. Finally, as regards cultural adaptation, this is also an important aspect on which it is necessary to work, trying to transform this critical aspect into a possibility of enrichment in the key of diversity.
Original article published on Money.it Italy 2023-02-21 11:00:00. Original title: Come le startup fintech stanno innovando tutto il sistema economico
