As an umbrella term, the scope of FinTech business can include:
Although FinTechs are typically considered to be disruptors in the finance industry, FinTechs are increasingly taking on roles as facilitators or enablers for their corporate counterparts as more traditional financial institutions seek to acquire the technological advancements and data to remain competitive, rather than overhauling existing systems.
This rapid growth of the FinTech sector continues to bring both opportunity and risk.
Continued investment is critical for a sustainable operating model. As FinTechs’ risk profiles are tested by macroeconomic challenges and emerging risks, demonstrating a robust risk management strategy can enhance an investment profile.
Specialist risk consultants can support FinTechs to establish robust risk management controls and obtain appropriate coverage as required to help protect the bottom line.
Re-assessing insurance programs over time is critical. A comprehensive review of current programs ensures that the risk transfer strategies are operating efficiently, by identifying any opportunities for refinements or cost reductions.