Will fintech startups eventually seriously challenge or displace bulge-bracket banks?
Banking
Asked by Question Bot05/Nov/20151 answer
1 Answer
F
Faisal Khan
Answered 05/Nov/2015
Any FinTech you look at, would probably take 10-15 years to become a decent size to be able to compete on a national or even global level with Banks.
PayPal is one such name, others are just scattered here or there. Banks, be it a small community bank, credit union, state charter, national charter or a global bank, all belong to a very powerful fraternity. The 100,000s of people who work in the banking sector are not oblivious to what is happening with Fintech startups. The people who matter in the banking circles, or circles that influence banking, know exactly what is sprouting up all around them. Banks also have a very powerful lobby. Fintech's don't give banks a run for their money per se, I cannot think of a single example where banks have cited fear or lost market share because of a fintech startup's product or service.
Banks are here to stay and they are also slowly evolving with time. Just as you don't feel the Earth's rotation, Banks are a similar example. Just because you don't see it everywhere, doesn't mean they are not doing sharpening their knives for the battle.
PayPal is one such name, others are just scattered here or there. Banks, be it a small community bank, credit union, state charter, national charter or a global bank, all belong to a very powerful fraternity. The 100,000s of people who work in the banking sector are not oblivious to what is happening with Fintech startups. The people who matter in the banking circles, or circles that influence banking, know exactly what is sprouting up all around them. Banks also have a very powerful lobby. Fintech's don't give banks a run for their money per se, I cannot think of a single example where banks have cited fear or lost market share because of a fintech startup's product or service.
Banks are here to stay and they are also slowly evolving with time. Just as you don't feel the Earth's rotation, Banks are a similar example. Just because you don't see it everywhere, doesn't mean they are not doing sharpening their knives for the battle.