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Banks and/or/vs FinTech Startups: Is There a Fight?

The rapid rise of FinTech startups seems to be throwing some shade on the banks basking in the sun. As the payment technology evolves, FinTech startups are found to be more imaginative in making money handling easier for consumers. In fact, payment companies raised more than $1 billion just in Q1 2015. Although the FinTech startups sector is growing rapidly, it is unlikely they will replace the banks because they actually rely on existing bank accounts. However, FinTech startups tend to shrink the banks’ profitable sectors making it harder for banks to maintain low-margin services.

In addition to threatening the sources of profit, FinTech startups have an advantage of not being under the eye of strict governmental controls. They can easily embrace the latest technologies available to provide seamless experiences and continue to experiment with new services. On the cont ...

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