August 29, 2017
FinTech aficionados could argue endlessly about the power gained by FinTech in the financial services industry, and they wouldn't be completely wrong. Indeed, 7,000+ financial technology startups around the world are proving to be capable of pushing the envelope beyond established consumer expectations, thus making it increasingly difficult for traditional institutions to match the pace. Moreover, global venture investments in FinTech grew by 11% to $17.4 billion in 2016. And in 2017, we have a FinTech alternative, which appears more appealing, for any bank service.
A certain process, however, will bring the honeymoon to its inevitable end. The consolidation of resources (financial, talent, technology, and ideas) in the financial services industry will balance the market. It will also bring it to the original structure, where a very limited number of companies control the majority of the market.
Besides, payments and lending will likely be among the first segments to demonstrate the futility of the quantity. There are already 1,000+ payments startups worldwide that are attempting to offer the same core service under different hoods. In fact, payments and lending/funding have steadily been the most represented and well-funded segments. Within the payments segment, mobile wallets/payments represent the largest piece of the pie. According to MEDICI data, about 34% of companies are already into this.