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Supplements » FundTech Autumn 2020

Editorial: Paying your way

Nicholas_PrattThis issue focuses on the changing relationship between fund managers and fintech start-ups.

Twenty years ago, as the influence of tech companies on the financial services industry came to the fore, the biggest issue for fund managers and banks seemed to be how to dress for a meeting with fintechs and whether to swap their three-piece suits and bow ties for ripped jeans and sneakers.

This sartorial dilemma was not wholly superficial and served to demonstrate some of the demographic and cultural differences between young, small and ambitious start-ups and large, conservative institutions.

Now though, the debate has moved on to more practical issues like intellectual property, the procurement process, staffing and, critically, funding. The funding issue is not just limited to venture capital and Series A fundraising but ensuring that asset managers suitably compensate start-ups for their time and effort when developing proofs of concept or pilot projects.

The pressure on cash flow as a result of Covid-19 has affected start-ups especially and never has it been more important that asset managers pay their way when engaging with new fintechs and demonstrate they are responsible clients.

Nicholas Pratt, Technology & Operations Editor

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