The FinTech Week in Review just got a case of the Mondays – but in a good way! We were cheating you, our dear readers, of one whole day of potential FinTech news that we couldn’t cover. Guess what? It paid off. Just this afternoon, a very deserving article came across our desks that may not have made it. So this week, we are taking a ‘macro’ look at FinTech and the FinTech Week in Review (I know, so meta).
Big Banks Will Win the FinTech Revolution
"The FinTech revolution hasn’t been canceled, it’s been co-opted.”
“The revolution will manifest in the back-end. As execution and other services become increasingly commoditized, financial institutions will compete based on their infrastructure and technological capabilities. Robo-advisors have received outsized media attention, but the future belongs to the robo-analysts. Wealth managers that can utilize FinTech partnerships to integrate the back-end infrastructure of data-gathering, analytics, and machine learning with their research departments will control this new integration point.”
“These advantages – not to mention a much lower cost of capital – make financial institutions much more difficult to disrupt than most other industries. Now that we’ve seen a few FinTechs learn this lesson the hard way, more startups appear eager to partner, rather than compete, with the incumbents.”
When every industry experiencing massive change, you must ask if FinServ (financial services) is just that different or if we need to wait just a little bit longer. You can call it whatever you want – disrupting, overhauling, innovating, revolutionizing – but completely shifting people’s relationship with trust, money, and wealth will take time (a lot of it). One aspect not directly addressed in this article is the community and regional banks. If FinTechs can’t take on the big banks, perhaps other banks can. Right now, the prospects aren’t great. Smaller banks are reliant on slow-to-innovate, incumbent infrastructure providers and most banks don’t have the risk appetite to heavily invest in technology. On the other hand, FinTech needs customers and smaller banks need growth. Perhaps that’s the makings of a different FinTech revolution (that or we just wait for the new crypto-financial system).
Top 3 Most-Read FinTech Week in Review
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