FinTech is set to make a statement in 2016 and deliver on the much hyped industry expectations. Here are the themes we see emerging in the 2016 FinTech landscape:
FinTech is Maturing
Which means that the technology quality and business standards of the FinTech disruptors is steadily improving. It will be harder for great disruptors to standout but easier for them to disrupt larger and slower traditional competitors. Customers who were sitting on the fence are finding more and more reasons to make the switch.
The Disaggregation of Financial Services
The industrial revolution brought with it specialization and the emergence of the manufacturing supply chain. The emergence of the supply chain in Financial Services Firms has only just started. Traditionally, Financial Services Firms did it all themselves. But now we’re seeing the beginning of large firm disaggregation and the emergence of financial services specialists.
The Connected Financial Services Firm
Technology is no longer a back-office function but a crucial business partner. At the heart of this transition is the challenge for a new level of connectivity. To thrive in this new era financial services firms must seamlessly integrate applications, customer data and devices. The Connected Financial Services Firm will prevail.
Disappearing Barriers to Entry
As we enter the Fourth Industrial Revolution we are seeing drastic reductions in the cost of technology combined with an ever improving access to this technology. Technology and Regulation were the two big barriers to competition for financial services firms. The technology barrier has been blown away and regulation is next…
The Surprise FinTech Wave
Financial Services Firms have been slow to respond to the changes underway in the FinTech industry. From payment mechanisms, digital currencies, lending and trading platforms, an overwhelming theme emerging is the rapid pace of change and the slow response rate from most financial services firms.
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