Insight
Title:
Fintech is booming
Description:
There are 5 main growth areas:
- Payments (especially mobile)
- Cryptocurrency (including blockchain adoption)
- Retail financial services (including robo-advice)
- Institutional financial services (including the trend to replace administrative personnel with technical personnel)
- Capital formation / equity financing (including crowd-funding)
Incumbents may struggle to compete because:
- they are weighed down by huge legacy costs and fixed costs bases.
- over-regulation has smothered competition, with most providers offering similar products at similar prices with similar conduct risk problems.
- it will be hard to pick the winners from the losers - a startup can afford to lose more than an established brand.
A recent global study study found that 43.1% of financial services executives though Fintech was a significant threat.
PESTEL:
Technological