We are in FintechFintechs should continue to lead innovations but also should keep anybody involved on the leading edge of the real focus; customer experience. Because there is no other thing that is more distinctive than this. All the rest is chewing the same beans twice...
Banks are followers by example; as they are conservative. But their role has to be as such. They will follow in innovation and products. They will bend with winds the markets move.
Are Fintech's disruptive?
Most not arguably; no! They are not disruptive in itself, they are merely the pulling horses of the existing finance and banking industry. Fintech’s will make the mistakes, broaden the horizons and lead the way. But not by a a visionary view; but just by deploying the latest technology possibilities and -really- hope to be the next purchase of another party.
What holds them back?
From our experience and views it is the existing balanced system which holds anybody back to move to quickly into anything else.
Where “quick” is a very relative understanding.
Don’t banks still have your trust to watch your money? Since centuries already? And aren’t it banks that rule, with our help and even wishes and laws, the financial system into the best dampened system. Where dampened doesn’t mean slow, old fashioned or not functioning but steady and trustworthy.
All things “trust” concerning are secured by regulatory barriers for newcomers to enter the financial markets. And they rightfully are.
But even when the Finch acquires a license to act as bank they have to fight to main things; the customer who really has no reason to move.
And next to that; the bank as an extreme dangerous commercial predator is awaiting the Fintech's succes; and than simply buys, duplicates or destroys. They have the money and the market…
The future of Fintech's
The future will show different banks and insurance companies. Because they will adapt.
They will adapt to what the successful Fintech’s will show is successful.
The reason of existence of a Fintech is of course replicating the wishes of the ever changing market space. Their role is one of consciousness, moving forward and leading the ways of the financial market.
But in the role of guide. Not in the role of future banks or financial system but in the role of Adjuster Not as Disruptor…
So; don’t invest in Fintech's?
Of course. We do invest. Because disruption is not the goal; but adding value is. A successful Fintech has great value to add for strategic partners. And these partners are wiling to pay for that added value; either by securing their own market or by deploying the newly available Tech.
And looking back in at least decades; there will have been a Fintech that has hit the nail right on the button. And did change the system. But only time will tell…
It is a peoples business, not bits and bytes.