What you need to know: Although established banks were fearful of disruptions in the past, banks and even Wall Street are already embracing fintech because it increases their net profits and reduces their complexities yearly. In addition, fintech is evolving so existing financial institutions and fintech companies are collaborating. Asia is a dominant fintech frontrunner because many of the startups are doing extremely well. In fact, Lufax, JD Finance, and Ant Financial have valuations over $1 billion making them Unicorns. Incumbent banks are collaborating with fintech firms for cross-border remittances.

Why it is important: Collaboration between established banks and fintech firms is mutually beneficial in bringing down settlement costs and collateral while streamlining the banking model. When fintechs bring in clear customer benefits, big banks can’t ignore them

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