November 22, 2016
A milestone moment in the financial technology world happened when a first challenger bank received its banking license, making FinTech a one-stop shop for financial services for individuals and businesses. Any service in banks’ value chain can now be substituted with a FinTech option from an array of solutions.
However, FinTech alternatives put together cannot be considered a full equivalent to a traditional financial institution mainly because those industries were originated with different goals and often target different types of customers. The democratization of financial services and the goal of addressing the needs of underprivileged groups of the population rather than the eligible middle class has been a hallmark of financial technology startups.
The scale of financial exclusion, extreme poverty in some countries and inability for the traditional financial sector to innovate fast made it possible for FinTech to grow fro ...