Fintech, Open Source, and Emerging Markets

Chapter 3. An Expanding Universe of Stakeholders and Players

New, unexplored markets beckon and the profit motive is not dormant. A business opportunity is a business opportunity. Many factors offer attractive returns to established players looking for growth, market testing of use cases, and compensatory strategies for offsetting downside risks back at headquarters. Meanwhile, philanthropic organizations see light at the end of the tunnel.

Fintech: Unstoppable Growth

The explosive growth in fintech is undeniable. And it does not look to be slowing down anytime soon. Venture capitalists, private equity firms, corporations, and others have poured an unprecedented amount of money into global financial technology startups. The fintech industry and its ever-expanding ecosystem promise to be gigantic in years to come. The number of investments and acquisitions is increasing year-over-year at an incredible rate. The spectacular growth seen in 2014 of $12.7 billion USD (quadrupling the $3 billion USD level of the year before) was overshadowed in 2015 by the stunning figure of $22.3 billion USD, an increase of 75 percent, including startups and investments. And this breathtaking expansion continues. Already in Q1 2016 fintech investments have surpassed the same period for last year, challenging our expectations of growth of any kind associated with financial services.

According to an Accenture report, collaborative fintech ventures—those primarily targeting financial institutions as ...