Section Three covers a range of topics important to both executive/board members of traditional financial services companies like banks as well as FinTech companies and their partners and investors.

Chapter 9 delves deeply into FinTech partnerships and analyzes the key strategic questions facing both FinTech companies and banks when assessing potential partnerships. This chapter provides insights into how to look at these strategic questions with an eye toward how each strategy could potentially affect the valuation and profitability of banks and FinTech companies. For example, a key question that community banks face is “Should we focus on building our own FinTech platform/tools, selectively partner with Fintech companies, or acquire FinTech companies?” A key strategic question for FinTech companies is “Should we focus on developing partnerships with existing traditional financial services companies or should we focus more on disruption?”

Chapter 10 focuses on issues important to early‐stage FinTech companies and investors/acquirers (including banks) and addresses the following questions: “How do you value an early‐stage FinTech company?,” “How do you value venture capital investments in early‐stage FinTech companies?,” and “When are valuations of early‐stage FinTech companies needed?”

The next two chapters focus on key issues facing more mature FinTech companies and their bank partners/potential acquirers and look at two potential strategies. Chapter 11 focuses on the key issues related to steering a FinTech company through to a successful exit such as an acquisition or merger. Additionally, this chapter touches on key considerations for banks that may look to acquire FinTech companies. Key questions answered in this chapter include: “What are some recent historical trends in FinTech exit activity?,” “How can acquirers analyze the potential valuation and financial impact of a FinTech acquisition?,” “How can banks compare those growth opportunities to other more traditional growth opportunities like acquiring other banks or building branches?,” “What are some challenges to structuring acquisitions of FinTech companies by traditional financial services companies like banks?,” and “What are some ways that banks can structure a FinTech acquisition to minimize some of these issues?” Chapter 12 focuses on key issues facing FinTech companies and their investors/partners when the company continues to operate independently and managing the business to maximize valuation and returns for shareholders. One key question addressed is: “What are ways to enhance liquidity if the FinTech company does not exit through an IPO or sale and continues to operate independently?”

Chapter 13 explores the question: “Is there a bubble in FinTech?” Up to this point, we have discussed the factors contributing to the excitement and interest in FinTech but this final chapter examines the potential over‐exuberance in the sector. It also explores challenges for the sector as it continues to evolve and mature. Additionally, we present a case study of a FinTech company whose ending was not successful. Hopefully, this chapter will help banks and FinTech entrepreneurs realistically assess opportunities and market potential and ultimately enhance profitability and/or efficiency through proper utilization of FinTech.