Wall Street’s Evolving Ecosystem via FinTech Integration

Work cluster

This year, Wall Street’s ecosystem may finally have to address its FinTech disruption issues. As FinTech continues pressing against the industry’s “invisible barriers,” many anticipated this issue would arise a few years prior. Regardless the arrival date, FinTech stands poised to establish itself in 2015 behind Wall Street integration and record investments that are expected to reach at least $6 billion by 2018.

FinTech became a hot topic for the consumer market after the global market collapse. In the ensuing years, the market grew to see an influx of startups—with many establishing as industry mainstays—that became everyday tools for users. Backed by that popularity and the enterprise market’s gradual acceptance, FinTech hit $3 billion in investments in 2013 and a record for quarterly investments in 2014, $1.7 billion.

However, the enterprise market’s barriers have made FinTech a slower grower than some had initially expected. Be it the industry’s strict regulatory rules or reluctance to upgrade largely dependent systems to modern times, the disruption came more as a gradual development rather than a full-scale ecosystem shift. As is the norm in these scenarios, regulation on financial innovation keeps the enterprise market a few steps behind from the consumers.

Regardless, FinTech and the market have started to take notice of each other’s benefits that have helped break down its barriers to some degree. With several innovators now managing more than $1 billion in assets, it is hard for the finance sector to not take notice. Conversely, the last few years have shown that FinTech’s brightest minds and companies understand the importance of having Wall Street veterans on its side.

The Apple Watch announcements became the latest to demonstrate this integration, as apps like Mint and Salesforce serve as key selling points to the brand’s latest innovation. While on the other side, companies like Google, Twitter and Facebook have taken notice of Wall Street’s top talents like Ruth Porat, Anthony Noto and David Wehner as keys to its own growth. Outside of social media, first-of-its-kind bitcoin platform Digital Asset Holdings got into the mix by hiring former senior JP Morgan executive Blythe Masters as its first CEO.

This integration often proves massively successful for the innovators that combine Wall Street leadership, industry experience and knowledge within technology companies to create a dynamic board room. Even as computer science’s top new talents arrive on the scene, their traditional career paths to startups and Silicon Valley continue expanding to include established businesses like Visa. The landscape is changing on various fronts.

As both sides evolve, 2015 could be the year we see more integration in the Wall Street ecosystem whether its welcomed or not. To make a successful movement you must have finance. To have an innovative enterprise market, a growing number believe you need FinTech. With growing mutual benefits, Wall Street’s ecosystem may never be the same again.