New Capgemini incubator matches FinTechs with corporates

02 January 2017 4 min. read

Capgemini has developed a new initiatives to better support financial services players work together with FinTechs. The firm’s offering includes identifying strong candidates on behalf of clients, applying its expertise for due diligence, and supporting them with integrating FinTechs within their organisation and wider ecosystem.

FinTech continues to tantalise the financial services industry with its potential to disrupt market segments, and even entire markets. Traditional financial firms are increasingly concerned about the significant disruption threat, but also see opportunities – particularly as independent vehicles for innovation. FinTechs too are interested in entering into relationships with traditional players, eyeing their large capital, and client books, as key to rapid scalability.

In recent years, the consultancy industry has sought to carve a bridge between FinTechs and incumbents by creating environments that are conducive to the development of promising financial technology, as well as offering them with propositions which may act as springboards for further engagement and consulting work.

Capgemini recently released a report into the development of the FinTech industry, finding that more than 73% of surveyed financial services industry executives are keen to enter into partnerships/collaboration with FinTechs, while another report from Roland Berger correspondingly found that, at the other side of the table, 86% of FinTechs are keen to enter into collaboration with traditional players.

New Capgemini incubator matches FinTechs with corporates

To bring the two together, Capgemini has launched a new global initiative to fast track FinTech engagements with or within its global financial services clients. The initiative leverages the firm’s domain and integration expertise to scan, select, and evolve FinTech innovation for its clients.

The new centre, the firm believes, offers a different proposition to the traditional incubator approach; focusing more on grooming FinTechs for integration with financial services clients, by leveraging the firm’s considerable resources to direct the development of promising startups. The incubator is open to the full gamut of FinTechs, and to support execution, the professional services giant will leverage its wider global network of Applied Innovation Exchanges (AIEs), discovery centers and related assets.

According to data from professional services firm KPMG and CB Insights, investments into FinTechs globally soared to $19 billion last year, up considerably on the year previous.

Thierry Delaporte, Head of Capgemini’s Global Financial Services Business Unit, says, "Be it generating exceptional customer experience or improving operational efficiencies, FInTech innovation is a catalyst to the industry. As the pace of innovation with financial services technology accelerates, Capgemini has developed this initiative to connect clients with FinTech innovations and foster agility.”

The firm recently also announced efforts to support the Indian market startup scene, more broadly, with its resources through its Applied Innovation Exchange presence in the country.