Algomi investment: leading partnership trends

Recent news of AllianceBernstein’s trade with software provider Algomi is just the latest in Algomi’s history of partnerships and teamwork between existing market incumbents and financial technology start-ups.

According to the World Economic Forum (WEF), these kind of partnerships and joint ventures between well-established market infrastructure and fintech companies is the key to gaining shares and for big banks, securing their monopoly on the financial industry.

The report by the WEF states that brand new market platforms introduced by fintech companies don’t typically challenge the giants in the finance industry. The report suggests that partnerships and collaboration between the newcomers and the well-established institutions is the most successful path to growth for both parties.

Rapid innovation allowed by fintech companies

Companies who have paid for Algomi investment have opened the doors to allow rapid innovation. The co-author of the WEF report said in a statement: “Fintechs have changed the basis of competition in financial services, but not the competitive landscape. Fintechs now define the tempo and direction of innovation in financial services, but high customer switching costs and the rapid response of incumbents has challenged their ability to scale”.

In the early days when early fintechs influence started to grow, financial institutions were reluctant to embrace the new technologies. This is because they felt a threat to their monopoly, but the real success stories came when they started to work together.

When we look at the larger picture, financial technology companies haven´t challenged any established financial institutions, but their partnerships have had a huge impact on the financial industry and how people work within the industry.

Algomi investment: a success story

Algomi is a success story in the fintech world. Back in March, Algomi received its biggest investment: $10 million from pan-European exchange Euronext.

This deal involves a 10-year plan which involves developing relationships with regional exchanges to establish an automated trading system in North America – Euronext’s first foray outside of the Euro zone. As a part of the deal, Euronext gained a minority share in Algomi and a seat on the board of directors at the London-based start-up.

For more exciting news on Algomi and other reviews, check back regularly.