Startups To Partner With Wall Street Firms Rather Instead Of Crushing Them
A revolution has taken over the financial technology or fintech industry and it is certainly grabbing the attention of big banks. Though it is the usual practice of fintech industries like financial planning startups and robo-advisors to crush their traditional counterparts, that trend has apparently changed. This is because of the common goal that industries from both the sides share, which is to help Americans save more money.
“Everybody benefits if a broad base of Americans saves more and has access to more capital so they can build businesses,” Maria Gotsch, the president and CEO at the Partnership Fund for New York City, told Business Insider.
Last week, Gotsch’s organization partnered with the Department of commerce and Learn Vest, which is a financial planning startup, to conduct a conference which witnessed the participation of over 40 fintech startups and some financial giants.
The conference was attended by personas like Secretary of commerce Penny Prtizker, PMorgan Asset Management CEO Mary Erdoes, Northwestern Mutual CEO John Schlifske, and many members from Goldman Sachs and MasterCard.
As the traditional financial institutions have been weighed down by post-financial crisis regulation and legacy technology, and are unable to support themselves, it has become a common interest to help them revive, by partnering with startups.
Partnership could be of many types. Some large institutions would be acting as mentors to the budding startups and would be hand-holding them up the learning curve. Some other companies are tying up with startups to enhance their digital platforms for the clients.
This would be benefitting to both the parties as the startups could learn so much more from the experience and expertise of these established firms.