Fintech and software payments will inevitably intersect as financial technology begins to resemble traditional technology such as software, a senior bank official said.
BANK of America has integrated its fintech investment banking team into its technology practice, reflecting the broader financial services industry’s shift toward software.
The bank will bring about 50 bankers into its technology group of about 200 people, said Kevin Brunner, the bank’s president of global mergers and acquisitions and global head of technology, media and investment banking. telecommunications.
Fintech is a catch-all term for more than a dozen types of financial-oriented technology companies, including payments providers, exchanges, online brokers, data sellers, portfolio management software companies and digital lending platforms.
Although how banks cover these activities varies from company to company, they generally fall under the umbrella of financial services, given the close ties between the banking sector and traditional fintech areas such as payments.
That’s changing as financial technology begins to resemble traditional technology, particularly software, Brunner said last week at Bank of America’s Tech Innovation Summit in San Francisco.
“Payments and Fintech software are bound to intersect,” he added. Fintech companies also have similar financial profiles to software companies, so it makes sense to have them covered by the same group.
This organizational change comes against the backdrop of Brunner’s recent appointment as head of technology, media and telecommunications banking, having previously been co-head of global mergers and acquisitions. BLOOMBERG