March 25, 2016
May be just about a decade ago, an average consumer would have a precise classification in mind for which industries Apple, Amazon, Walmart and Bank of America represent. In 2016, we can’t be so sure anymore as former pure technology companies got their hands firmly into various other industries including financial services.
The emerging startup culture in the world’s innovation hubs has brought forth the notion of open innovation, where R&D, talent pool, idea generation and new product development are not exclusively an internal process or asset, but can be external as well. Beneficial partnerships are being forged across industries among companies that are not related at a first sight. As examples, look at Siemens and Airbus Group working together on a research partnership to introduce new electric propulsion systems. A Philips and Teva joint venture called Sanara Ventures is focusing on healthcare innovation. There are other companies that spin off venture arms to look for opportunities in other industries. There are numerous examples like Google, Microsoft and others. Let’s look at some of the interesting examples of non-financial players that now gain significant weight and impact in the financial services industry.
Amazon would be one example with its initiative to enter the lending business. Even though there were things the ecommerce giants got all wrong in payments, the lending business is still an open door. In January 2016, Amazon made a bold move to compete against the UK’s high-street furniture and ...