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Nearly £1m in additional revenue generated by fintechs who outsource to specialists


Report from Moorwand explores the impact of outsourcing to either specialist or generalist providers on fintech growth

London, UK, 4th August 2021: Moorwand, a payments solution provider, today launched a report that reveals fintechs who outsource to specialist partners generate nearly £1m in additional revenue. The report ‘Specialists vs. generalists: How do fintechs fuel growth?’ explores why and how fintechs outsource to third parties, the importance of outsourcing for fintech growth, and the impact of working with specialists or generalists on fintech businesses.

Moorwand logo
Moorwand logo

To understand why and how fintechs outsource, Moorwand commissioned an independent study of 75 senior decision makers at fintech firms across France, Germany, Ireland, Lithuania and the United Kingdom. In particular, Moorwand wanted to understand whether fintechs outsource to specialist partners that provide a specific service, or generalist partners that provide a range of services. The study features contributions from leading technology providers and consulting firms including FN1X, GPS, Pannovate, Polymath Consulting, Ozone API and W2.

Key findings include:

Fintechs outsource to fuel growth
Fintechs outsource to build out their capabilities quickly and efficiently as well as expand into new markets and new customer sectors. Interestingly, user experience is one area that nearly half of fintechs outsource and 84% see as ‘business critical’. The top three reasons fintechs outsource are:

  • Improve the user experience
  • Accelerate time to market
  • Plug gaps in existing capabilities

Outsourcing consumes nearly one fifth of fintech budgets
With almost one fifth (18%) of total fintech budgets dedicated to outsourcing, selecting a partner is a significant business decision. Furthermore, nearly all outsourced services are considered ‘business critical’ – meaning they are essential to the operations of the business.

Established fintechs outsource more – especially compliance requirements
For nearly all services analysed, established fintechs (five years or over) outsource more than their younger (under four years) counterparts. For example, when it comes to loyalty and reward programmes, 35% of younger fintechs outsource, versus nearly double (67%) for established firms.

100% of respondents agreed that compliance is one of the primary benefits of outsourcing. And when it comes to compliance-related services - from Open Banking to Accounts and Issuing - fintechs who are more established, are also more likely to outsource.

Specialists are perceived as better partners and deliver additional revenue
Fintechs who only use specialists are more likely to rate their relationship as ‘very good’ (86% for specialists vs. 55% for generalists). And this positive relationship also extends to customers, with fintechs that use specialists reporting an increase in customer engagement (91% for specialists vs. 76% for generalists).

When it comes to impact, fintechs that use specialists report additional revenues of almost £1m as a result of their choice of outsourcing partner. And looking to the future, the 75% of the fintechs that are planning on changing how they outsource, plan to use specialist providers.

“For a long time, the fintech sector was characterised by the idea of disruption and competition. As the industry matures, propelled by the arrival of Open Banking, BaaS and more recently Embedded Finance, focus has shifted to collaboration to drive growth,” said Vicki Gladstone, CEO and COO at Moorwand. “The research clearly demonstrates that outsourcing is helping firms to improve the customer experience, expand into new markets and customer segments, and launch new products and services. And it also demonstrates that as a fintech becomes more established, they increasingly work with specialist partners, especially when it comes to compliance.”

“Whether the fintech is big or small, in the UK or France, focused on payments or lending, the right choice of outsourcing partner is critical to fueling growth,” concluded Gladstone.

The report “Specialists vs. generalists: How do fintechs fuel growth?” can be downloaded here:


Notes to editor

The survey was conducted May-June 2021 by independent research agency Coleman Parkes on behalf of Moorwand, in accordance with the UK’s Market Research Society guidelines. Respondents were senior decision makers responsible for outsourcing business critical services in fintech companies of varying sizes.

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About Moorwand
Moorwand is a London-based payments solutions provider offering issuing, digital banking, and acquiring services. It supports the innovators of the payments and fintech space by providing access to card schemes and banking services, in addition to Electronic Money Services.

Moorwand’s vision is to transform payments compliance into an enabler of innovation for banks, fintechs, and payment companies.

Moorwand is licensed by the Financial Conduct Authority of the United Kingdom as a regulated Electronic Money Institution to issue electronic money and provide payment services throughout EEA.

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