The “Waves” of FinTech

The “Waves” of FinTech

Originally, fintech was a response to the 2008 crisis that led to stricter  financial regulations. Tech startups were now able to create companies based on financial institutions lines of businesses that became less profitable. These new regulations created an environment ripe for tech startups that were able to identify the needs of consumers while capitalizing on the ability to use the big data of consumers.

Eventually, the fintech revolution gained mass attention from the large players in the finance industry. Soon, every large finance corporation had their own innovation centers. Many large banks and financial service firms have been rather slow to innovate and thus have had to play catch up in various areas to remain competitive.

The latest trend of fintech appears their understanding that disrupting the banking industry on their one will be a difficult task. Going alone ultimately has a low chance of succeeding, so many fintech entrepreneurs will likely be seen partnering with the financial giants. Partnering with banks and other financial service firms can help them in their developing process. I think this is an important step in the fintech movement as startups will not just see large banks and financial service companies as the problem, but instead as partners that could help them achieve their goals.