The effects of the fintech revolution are spreading everywhere—traditional financial firms are feeling pressure to adapt or die, new startups are hungry for investors and customers, and consumers are confused about all the changes coming their way.
The truth is, we’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.
No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages—and avoid the dangerous pitfalls—of the fintech revolution. Here are just a few of the most important trends:
While some fintechs do compete directly with incumbents, there is a much broader range of relationships emerging when it comes to partnerships, some of which will endure, while others morph into acquisitions. (The Fintech Ecosystem Report)
Different hierarchy could emerge in the payments industry as startups find entry points into the market and as incumbents adapt to digital. (The Payments Ecosystem Report)
Fintech firms focused on the insurance sector (“insurtechs”) are starting to find traction by targeting retail customers—both consumers and small businesses that have relatively simple insurance needs. (The Insurtech Report)
Regulators in the EU and the UK are aggressively overhauling financial regulations that were created for legacy institutions so new players have a realistic chance at survival–this may allow startups in those countries to lead the way in fintech innovation over U.S. competitors. (The Fintech Regulation Report)
Blockchain technologies like Bitcoin are getting a serious look by the world’s largest banks—they’re eying billions in cost savings if the serious hurdles that come with a new form of currency can be overcome. (The Blockchain Report)
In just three short years, robo-advisors will have $8 trillion (or 10%) of global assets under management—a remarkable pace of growth and a serious challenge to the business model of traditional asset managers around the world. (The Robo-Advising Report)
The bank branch is going to die. Over one-third of millennials say they don't use a physical bank location, and average monthly transactions at bank branches have steadily fallen for over a decade. (The Digital Disruption of Retail Banking Report)
It’s nearly impossible to keep up to date on all the fast-moving developments in payments and fintech, and everything they touch. In fact, it's a full-time job in itself.
Source - Business Insider