Most can see the bright potential and future ahead for fintech. However, this article points out how many up-and-coming fintech companies will fail because of the incessant need in today’s industry to say “yes” to customers. Pleasing the customer and giving the best customer experience is at the top of the priority list for many companies. And however good this strategy might be in practice, John Maxfield warns companies of the risk this strategy leaves companies vulnerable to. Specifically, in banking and loans/lending. Studying the history of banking should be a very common practice, especially considering what the economy went through in the past 10 years. However, companies are priding themselves more now than ever (specifically lending firms) on getting customers tens to hundreds of thousands of dollars in loans within just a week or two. Maxfield warns that the lack on in-person experience with the customers is an alarming move for the industry. The amount of money that is being loaned and transferred without the company ever really knowing where it is going is setting companies up for fraudulent behavior. I think Maxfield has a great viewpoint on this topic. Although companies should continue to be innovative and work to improve customer experience, we all need to be cautious of what the realities are for our society.
https://www.fool.com/investing/2017/02/08/lessons-for-fintech-from-the-history-of-banking.aspx