While originally many startups tried to compete with traditional financial institutions, currently, there has been a shift toward collaboration between them through partnerships or acquisitions. Thanks to technologies like robotics, cloud computing and data analytics, “we are now in a golden age of fintech”. Globally, the number of investments in fintech startups competing against the traditional financial institutions versus that of investments in startups pursuing to collaborate with them has remained steady over the past five years (“with 62 percent of deals going to competitive companies”). The move is pretty much obvious in North America, especially at New York. It is surprising that “in the first quarter of 2016, New York received more fintech financing than Silicon Valley for the first time ever. I do agree with the article that collaboration, and eventually a real adoption instead of competition will strongly continue and help fundamentally change the banking ecosystem. Of course, there are still definitely a lot of work for banks and regulators to seamlessly adopt new technologies which provide solutions for many problems simultaneously.
Source: https://www.accenture.com/t20160724T221504__w__/us-en/_acnmedia/PDF-26/Accenture-FinTech-New-York-Competition-to-Collaboration.pdf#zoom=50