With fintech companies doing deal with stratospheric multiples, it is easy to reach the conclusion that fintech is a bubble which is going to burst sooner rather than later. While this may be attractive logic, fintech investment is not merely justified by conventional ROI in the short term but in fact represents outsourced R&D by established financial services organisations. Major banks see the wisdom in not spending eight figure sums on R&D & innovation but rather to buy an early stage proven technology for a fraction of the sum and absorb it into their own business.