The growing popularity of applications such as Software as a Service (SaaS) will support greater growth in the financial technology industry during 2010, a new report has claimed.
A study by PricewaterhouseCoopers (PwC) revealed that vendors working within the financial technology sector can expect to benefit from greater levels of compliance, regulation and increased demand for risk management solutions.
Organisations will expand their IT systems during the year as part of a wider plan to improve efficiency across their businesses, the report forecast.
Andy Morgan, PwC partner, said: “Carve-outs from financial institutions and smaller infill deals are expected to prevail within the FinTech sector over the next 12 months but Merger & Acquisition (M&A) activity will require creativity in terms of deal structures to achieve results.
“The real hotspot in the world of applications is software-as-a-service (SaaS) as organisations see the benefits of moving large-scale software expenses from their capital budget to their operating budget, which will certainly drive increased M&A activity.”
Further findings from the report suggested that heads of businesses now view the “digital transformation” of their organisation to be a priority.
Previous research from PwC showed that the number of deals in the global financial technology marketplace fell by more 60 per cent during 2009 when compared with figures from last year.