Evolution or revolution?


From a couple of years until today the IT system speaks about #fintech. For those who don´t know what is this : "Ey, you are out of business, You are not a Digital Trendy".

*Fintech (financial technology) is an economic industry composed of companies that use technology to make financial services more efficient. Financial technology companies are generally startups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software. (Wikipedia definition)

What is 'Fintech'

Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations infinancial literacy and education, retail banking, investment and even crypto-currencies like bitcoin.

Its about retail banking the porpouse of this article. What has happend with the new #fintech banking apps disruption?

Who uses fintech?

There are four broad categories: 1) B2B for banks and 2) their business clients; and 3) B2C for small businesses and 4) consumers. Trends toward mobile banking, increased information, data and more accurate analytics and decentralization of access will create opportunities for all four groups to interact in heretofore unprecedented ways. 

 So, after a few year investing on Fintech Startups/apps . The question is if we are looking at a Fintech Revolution or Evolution?

The FinTech scene has been hyped for some years now - media outlets are pushing out article after article about a FinTech revolution and talk of a guaranteed disruption for the financial industry's existing top dogs: banks and financial operators. In the eyes of some, FinTech will even replace traditional banking altogether and anyone that doesn't adapt will inevitably disappear.

But what is the factual reality behind the hype? How and to what extent did FinTech change the financial industry in the past few years? Surprisingly, the existing market leaders are still very successful - at least if we look at the figures and numbers this is a growing sector and investors look for those fintech startups as the new Holy Grial for banking.

So where is this wave of digital disruption and why should banks worry about the existing FinTech revolution? In my opinion, banks and financial institutions do not fear the competition of startups at all and rather than seeing them as a threat, have instead decided to take advantage of the wave of innovation. They do so directly by making use of the optimization that FinTech can add to their offered services. Indirectly, the rise of FinTech has also started changing the internal organization of traditional financial institutions with consequences such as the closing down of branches.

Going back to the title: the hype around FinTech seems to be an organic evolution of the financial industry rather than a revolution - at least for the time being, at least according to the numbers and at least in Switzerland.

I believe the disruption exists and is applied to the consumer experience and needs in order to obtain more profits from current clients .