May 24, 2018
The consolidation of resources (financial, talent, technology, and ideas) in the financial services industry is gradually balancing the market and relationships between startups, tech corporations, and institutions. It will also bring it to the original structure, where a very limited number of companies control the majority of the market. One of the ways businesses can warrant long-term potential is by expanding the portfolio of their services.
The pattern is very similar to the history of centralization in institutional banking, except that the new partnerships and product/solution portfolio expansions have a different face and impact on the end user – useful for personal and professional lives integrations, business solutions that cover every pain points for newly baked entrepreneurs (Stripe Atlas), or industry-transforming mergers defining identity management of the future (Sprint and T-Mobile).