According to the article, many fintech companies are have missed their targets set after elongated fundraising cycles, mounting losses and dropping stock prices. The first reason the article states fintech firms are failing is largely due to the fundamentally strategic contradiction between technology and finance. Fintech firms are pressured by investors to return investments quickly, however the finance sector is slow growing in nature. The second reason is that market realities encourage short-term thinking. Companies abandon long-term investment in innovation for quick growth using traditional sales techniques. Lastly, incumbents in the market are powerful and resistant to change. Financing and banking services are highly regulated and conservative, and do not see fintech companies as a current threat.
Although I agree that fintech firms still have a long way to go before replacing banking and financial services, if they ever do, I still believe they have succeeded in disrupting the market. While they may not replace traditional firms, they have pressured finance and banking companies to be more innovative and offer services incorporating technology to stay competitive. I believe in the future, the blend between finance and technology will be inseparable, so traditional firms will need to adopt and adapt to stay on top.
Source: 3 Reasons Why Fintech is Failing