Strategic Partnerships as Catalysts for Financial Data Infrastructure Innovation

The financial data and markets infrastructure (FDMI) industry is undergoing a transformative phase, driven by strategic partnerships between traditional financial institutions and fintech innovators. These collaborations are not merely incremental but are redefining the architecture of financial services, enabling faster cross-border payments, enhanced data analytics, and scalable digital solutions. As global FDMI revenues surpassed $278 billion in 2023 with an 8% compound annual growth rate (CAGR) since 2018Positioning for the future of the FDMI industry^[1], the sector's momentum is underpinned by a confluence of technological advancements, regulatory shifts, and evolving customer expectations.

Market Growth and Strategic Synergies

The FDMI industry's robust growth is fueled by recurring revenue models, such as data subscriptions, and the expansion into emerging asset classes like private markets and digital assetsFinancial data and markets infrastructure industry is thriving^[2]. Strategic partnerships have become a cornerstone of this evolution. For instance, Santander's collaboration with Ripple has led to the development of One Pay FX, a blockchain-based cross-border payment platform. By 2020, this platform had processed over $528 million in transactions, offering customers real-time visibility into fees and exchange ratesSantander Partners with Ripple to Bring Certainty and Speed to International Payments^[3]. Santander's broader digital transformation strategy, including a €20 billion investment in fintech initiatives, underscores the bank's commitment to leveraging blockchain for competitive differentiationSantander + Ripple: One Pay FX and the Future of Cross-Border Payments^[4].

Similarly, BBVA's partnership with Atom Bank exemplifies how traditional banks can harness fintech agility. BBVA's initial £45 million investment in 2015 for a 29.5% stake in Atom Bank expanded to a 39% stake by 2023, enabling BBVA to integrate Atom's digital-first approach into its operationsAtom and BBVA in strategic partnership^[5]. Atom Bank's FY23 results highlight the scalability of this model: revenue grew by 62%, customer base doubled to 224,000, and operating profit exceeded £25 millionBBVA, Toscafund and Infinity to invest £100 million in Atom Bank^[6]. This partnership illustrates how fintechs can drive cost efficiency and customer-centric innovation while banks provide capital and regulatory expertise.

ING's collaboration with Funding Options further demonstrates the value of fintech integration. By embedding Funding Options' AI-driven cash flow tools into its digital banking services, ING has enhanced its offerings for small businesses, aligning with its strategy to prioritize tailored financial solutions3 Bank-Fintech Partnerships that Led to Innovation and Mutual Growth^[7]. While specific ROI metrics for this partnership remain undisclosed, ING's 1Q2025 net result of €1,455 million reflects the broader benefits of such innovations, including resilient fee income and strong deposit growthING posts 1Q2025 net result of €1,455 million^[8].

Financial Metrics and Investment Rationale

The FDMI sector's outperformance relative to the broader financial services industry is evident in its total shareholder returns (TSR). From 2019 to 2023, FDMI firms achieved a 17% annual TSR, 70% higher than the sector averagePositioning for the future of the FDMI industry^[1]. This outperformance is amplified by surging M&A activity, with global fintech M&A volume reaching 859 deals in 2024 and 450 transactions in Q2 2025 aloneFT Partners Quarterly FinTech Insights and Annual Almanac^[9]. Strategic acquisitions, such as Advent International's $6.3 billion purchase of Nuvei and Fiserv's acquisition of Finxact, highlight the sector's focus on payments and digital banking consolidation2024 FinTech Surge: M&A Activity Drives Industry Revival^[10].

However, investors must navigate challenges, including heightened regulatory scrutiny. The FDIC and CFPB have intensified oversight of bank-fintech partnerships, emphasizing compliance with anti-money laundering (AML) and Bank Secrecy Act (BSA) requirementsInsights on strategy, risk and regulation in bank-fintech partnerships^[11]. For example, enforcement actions against Quaint Oak and Hatch Bank underscore the need for robust compliance frameworksBank-Fintech Partnerships in 2025: Challenges and Outlook^[12]. Despite these risks, AI is emerging as a critical enabler, automating compliance checks and improving risk assessmentsHow Banks and FinTechs Are Partnering to Thrive in …^[13].

Future Outlook and Strategic Imperatives

Looking ahead, AI-driven market volatility and energy transition policies will shape FDMI infrastructure demand. U.S. data center power consumption is projected to rise from 3% to 8% of total demand by 2030, with AI accounting for 20% of this growthInfrastructure in 2025: Megatrends and Mid-Market Opportunities^[14]. This trend positions FDMI providers to capitalize on infrastructure investments while addressing sustainability goals.

For investors, the key lies in identifying partnerships that balance innovation with regulatory resilience. Santander's Ripple collaboration, BBVA's Atom Bank investment, and ING's Funding Options integration exemplify how strategic alliances can drive both operational efficiency and market expansion. As the sector evolves, firms that prioritize open banking principles, structured collaboration, and AI integration will likely outperform peersHow Financial Institutions Can Confidently Swipe Right On Fintech Partnerships^[15].

Conclusion

The FDMI industry's trajectory is inextricably linked to the success of fintech-bank partnerships. These collaborations are not only driving operational efficiencies but also redefining revenue models through data monetization and AI-driven services. While challenges such as regulatory complexity persist, the sector's growth potential—bolstered by a 21% revenue CAGR for fintechs in 2024Fintech’s Next Chapter: Profits Rise, AI Reshapes the …^[16]—makes it a compelling investment opportunity. For stakeholders, the imperative is clear: embrace innovation while navigating risks through structured, compliant frameworks.