Noting that 2017 is a year that is experiencing a surge in Fintech investment, Accenture’s (NYSE:ACN) 6th FinTech Innovation Lab London, is now open for applications. The deadline for applications is October 20th. The Lab begins in January 2018 and entrepreneurs will ultimately present their business cases at an Investor Day in March to financial service executives and investors. The three-month program is open to both early and growth stage companies. Accepted Fintechs will receive mentoring and will accelerate their business development working directly with top financial institutions.
Accenture states that this year’s Lab has introduced a new stream to help Regtech startups develop their business strategies and fine tune their tech. RegTech is growing in importance as banks will be compelled to embrace Open Banking and PSD2 and data protection regulations (GDPR) coming into force next year.
Big Money is Rolling In
In the first half of 2017, the UK raised nearly £530 million in Fintech investment, which is the total raised in 2015 (£562 million). London remains a burgeoning hub with 73 deals so far this year, behind only to New York and Silicon Valley which are both ahead by 14 deals.
Year to date, London remains a center for Insurtech investment in Europe, with 30% of all deals in the continent taking place in the city. Insurtech investment increased to a record £218 million in the first 6 months of 2017, compared to £7.3 million the year before.
“Large financial services firms are now finding ways to adopt fintechs into their business models as regulatory requirements become more urgent and competition from tech platforms has become more specific,” says Julian Skan, senior managing director in Accenture’s Financial Services and executive sponsor of FinTech Innovation Lab London. “This is causing incumbent firms to question long-held beliefs on vertical integration.”
Skan expained the new Regtech stream purposefully coincides with an increasing demand for financial firms need to provide consumers greater access to their data.
“Looking ahead, with new technologies like blockchain, smart contracts and more mature AI coming into play, the need for effective solutions is becoming increasingly urgent. At the Lab, we’re proud to bring innovators and financial firms together to navigate their businesses in an increasingly complex world,” said Skan.
Companies that have participated in the London Lab include Ageas, AIB, AIG Europe, AXA, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, HSBC, IF, Intesa Sanpaolo, J.P. Morgan, Lloyds Banking Group, LV=, Morgan Stanley, MS Amlin, Nationwide, OP, Rabobank, RBS, RSA, Santander, Societe Generale, Standard Chartered, Towergate, UBS and XL Catlin.
“We are delighted to be involved in the FinTech Innovation Lab London and look forward to meeting a new group of exciting entrepreneurs helping to take the financial services industry forward,” said Andrew Sargison, Global Head Of Advisory, Sales & Distribution Technology, at Morgan Stanley. “Technology is advancing at a rapid pace and we are committed to supporting these programmes that help accelerate innovation for the industry. That is why we are keen to mentor promising financial start-ups and foster a collaborative environment.”
Accenture along with a dozen major banks launched the FinTech Innovation Lab London in 2012, with support from the city’s mayor and other government bodies.
Since its launch, 56 start-ups have participated in the London Lab, securing more than 50 contracts with global banks and creating over 800 jobs.
The London Lab is modelled on a similar program that Accenture co-founded in 2010, with the Partnership Fund for New York City, the US$115 million investment arm of the Partnership for New York City (www.pfnyc.org).
In 2014, Accenture launched FinTech Innovation Labs in Asia-Pacific and Dublin, Ireland. Globally, the Labs’ alumni companies have raised more than US$863 million in financing after participating in the program.