At this point, Fintech is past its infancy and inception. More and more money is being invested in it, and it is at the point where the potential in which it can disrupt the financial services industry is apparent. What Fintech is allowing companies on the supply side to do, is act in new ways to serve their needs by meeting value chains with better quality, speeds, and prices. On the consumer side, there is increased transparency, consumer engagement, and ways in which consumers behave which all change the dynamics of how consumers’ needs should be met. Since Fintech is largely geared towards accessibility and ease for consumers, the reasons why consumers adopt Fintech solutions is very interesting.
Unsurprisingly, the ease of setting up an account is the biggest reason why consumers adopt Fintech. Instead of having to stand in a line and fill out paperwork, an account is often just requires and email and identification. From there, Fintech also offers better rates and fees. Not included on the above graphic, are other reasons why Fintech is succeeding.
What else is interesting is how global banks view fintechs, despite always hearing how Fintech is disrupting the financial services industry. In North America, 20% of banks in the study view Fintechs as competition and a threat. 31% of banks view them as possible collaborators.
Linked Article: http://www.cio.com/article/3148756/leadership-management/the-fintech-effect-and-the-disruption-of-financial-services.html
Interesting read. Its amusing to see how rapidly fintech has been adopted by various industries and per a report published by EY, this rapid adoption will continue to grow significantly in the next year. Product awareness is one of the key obstacle in this scenario.