By Nizar Hneini, Saumitra Sehgal and Luca Turba

The global financial services landscape – particularly banking – is undergoing a profound transformation driven by rapid technological innovation and the rise of financial technology firms (Fintechs). Once dominated by traditional banks, the sector now features digital entrants that challenge established models, redefine customer expectations and reshape how financial services are designed and delivered. Over the past decade, Fintechs have evolved from niche payment players to a diversified ecosystem spanning digital banking, lending, wealth management, insurance and blockchain. Their growth has been fueled by demand for seamless digital experiences, supportive regulation and greater financial inclusion. As a result, the number of Fintechs has surged, with the global market expected to expand nearly eightfold by 2030.

For banks, this disruption brings both challenges and opportunities. While Fintechs threaten parts of traditional value chains, they also introduce technologies that can enhance competitiveness. Fintechs can drive revenue through better risk modeling, digital engagement and access to underserved segments, while also optimizing costs by automating processes, reducing intermediaries and improving cybersecurity.

To capture this potential, banks must shift from a defensive stance to one of collaboration. A thriving Fintech ecosystem - comprising innovation communities, regulators, service providers and investors – is essential. Such an environment fosters interaction, experimentation and shared value creation, enabling Fintechs to scale effectively and banks to fully leverage their innovation power.

Collaboration can be operationalized through a spectrum of partnership models. Traditional approaches, such as commercial agreements, strategic partnerships, equity investments and acquisitions, integrate Fintech solutions within banks' agendas. Meanwhile, hackathons, incubators and accelerators connect banks to emerging technologies , entrepreneurial talent and new business models. Combined, these create a robust collaboration portfolio balancing strategic control with agility.

In this rapidly changing context, the financial services market is being shaken by Fintechs and will continue being so - increasingly - in the future. Therefore, it is crucial to understand how the role of more traditional financial institutions - particularly banks - will need to be re-shaped and, at the same time, what will be the role that Fintechs can play in this market.

This report examines the advantages of Fintechs and how these can be deployed not only "stand-alone" for the benefit of Fintechs, but also more broadly looking at the enhancement of the entire banking sectors, including its traditional players, i.e., banks. In particular, the report provides answers to the following key questions:

1. How will the banking sector coexist with Fintechs in the coming years?
2. What conditions are necessary for Fintechs to successfully establish themselves in the financial services sector?
3. What models can financial institutions adopt to elevate their future journeys supported by the "Fintech advantage"?

Access the complete report to discover practical solutions and future strategies.