To support its clients access strong startup propositions in the financial technology space, FIS has launched its own network for ‘high performance’ FinTechs. The platform, named FIS HiPo Network, aims to connect corporates with early stage startups and to support wider collaboration within the FinTech landscape.
The possibilities offered by FinTech startups has become increasingly important to financial services firms; offering a channel through which to access innovative, and entrepreneurial, ideas and talent. Several studies in recent months have touted FinTechs as a potentially disruptive force to the industry; however, at the same time achieving this alone is more unlikely than likely, with cooperation deemed as key to mutual success.
While the possibility of a disruptive proposition from a startup also possesses considerable risks for traditional players, collaboration between incumbents and FinTechs has the potential to generate benefits for both sides. Traditional players seek innovative potential, while startups seek access to a wider customer base, capital and expertise.
A Capgemini report found that 77% of executives from traditional institutions are keen to collaborate or enter into partnerships with FinTechs, while a survey of FinTechs themselves, conducted by Roland Berger, showed overwhelming support (86%) for some form of collaboration with traditional market players.
FIS HiPo Network
In a bid to foster collaboration in the space, FIS, one of the world’s largest suppliers of technology services to the financial services industry, has announced that it is launching a new proposition: the FIS HiPo Network. HiPo stands for ‘high potential’, with the firm focusing on connecting early stage startups whose propositions have been deemed to have ‘high-potential’ and are closely aligned with the firms’ global client base. The FIS HiPo Network, which so far has six startups taking part – Akouba, Bleu, Flutterwave, Fundseeder, Hexanika, and LumoXchange – is open to further FinTechs startups whose offerings meet the firms’ criteria.
Commenting on the new platform, Gary Norcross, CEO of FIS, says, “FIS has a responsibility to help our clients stay competitive today, while remaining cognisant of the rapid changes taking place in the financial services industry. The FIS HiPo Network expands the innovation strategy for our firm and has been developed to bring the realisation of new innovations to market in an efficient and practical manner.”
Bringing ideas together
Consultancy firms are increasingly seeking to become a bridge between FinTechs and their own client base within the financial services industry. For instance, established players such as Capgemini are developing incubators, while new entrants like 11FS are leveraging considerable industry experience to support further development in the sector as well as that of the startup ecosystem. Additionally, firms such as The Boston Consulting Group, Oliver Wyman, Capco and Deloitte Consulting are stimulating the ecosystems more broadly through a range of research programmes, partnerships and alliances.