skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view


Fintech, the term applied to the more technology-focused start-ups in the financial services sector, is causing many banks headaches. A number of higher-tier banks around the world have started accelerators and innovation labs with the aim of tapping into their innovative ideas and dealing with emerging competition. However, having accelerators and innovation labs that aim to grow ideas and firms is expensive and difficult. Oracle plans to help banks with their fintech problem by leveraging its enterprise resource planning (ERP), cloud, and industry-specific offerings.

Oracle plans to address banks' fintech problem with its cloud, ERP, and industry capabilities

Fintech is not a new phenomenon, but since the disruption of the financial services industry after 2008, it has become increasingly important in the banking industry. A number of banks, including many tier-1 and tier-2 institutions around the world, have recently started to invest heavily in fintech. One driver of this trend is the banks' desire to access technology innovation; another is the aspiration to create a business relationship with fintechs that are dealing with potential new markets, or those that are potential competitors. However, having accelerators and innovation labs where new ideas are being developed and firms are being grown is expensive and difficult. Nurturing ideas into concrete value-adding solutions and products, and growing start-ups into bigger firms, requires time and resources.

Oracle plans to launch an offering in this exciting space that addresses some of the problems associated with fintech accelerators, thereby helping banks grow their fintech businesses. The offering would use Oracle's ERP capabilities and cloud expertise, as well as the specific expertise it has in a number of industries. Among the financial software providers, Oracle is especially well-placed to enter this space as it can leverage so much of its horizontal software expertise. The first ideas the company has are around offering a development and testing platform, which Oracle is developing as a cloud offering for its industries markets. This would significantly cut the costs of software development.

Many banking software providers offer banks access to fintech start-ups' services and products either as white-label offerings or through partnerships. The fintech companies associated with this mode of cooperation tend to have an offering that complements banks. Personetics, which offers a solution that enables automated interaction with clients on digital banking channels, is an example of one such fintech start-up. However, dealing with accelerators and software development is something that is not currently covered by banking software providers.


Further reading

"Will fintech investment save the insurance industry?" IT0004-000428 (July 2015)

"RBS is looking to the FinTech ecosystem to help drive innovation" IT0003-000659 (July 2015)

2016 Trends to Watch: Retail BankingIT0003-000671 (November 2015)


Noora Haapajärvi, Associate Analyst, Financial Services Technology

Recommended Articles


Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700

Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at

Contact marketing -

Already an Ovum client? Login to the Knowledge Center now