Global Economy in Free Fall, Banks Desperate to Cut Costs and Boost Profits
The International Monetary Fund has officially declared the global economy to be stuck in a "sticky spot," and as a result, banks and financial institutions are scrambling to find ways to slash operating costs and increase profits. And what better way to do that than by investing in a startup that can help them do just that?
Enter Form3, a fintech company that has just raised a whopping $60 million to continue its mission of connecting financial players and enabling account payments. The startup, which has already gained the backing of major players like Visa, Goldman Sachs, and MasterCard, is valued at a staggering $570 million post-money.
But what sets Form3 apart from other fintechs is its humble beginnings. Co-founders Mike Walters and Michael Mueller, both former Barclays executives, were frustrated with the inefficiencies of building new services and decided to apply modern technology to solve the problem. And thus, Form3 was born.
The company’s CEO, Walters, claims that its solution is a game-changer, allowing financial institutions to create faster and more efficient payment services for their customers. And the numbers back him up – Form3 already handles over 50% of all non-cash payments in the UK and has seen its processing volume double globally in the last six to nine months.
But what’s really going on here is a desperate attempt by banks to cut costs and boost profits in a market that’s rapidly changing. With the rise of fintechs and digital payments, traditional banks are struggling to keep up, and Form3’s solution is a way for them to stay relevant.
The question is, will this investment pay off for Form3, or is it just a Band-Aid solution for a dying industry? Only time will tell.