The rise of Chinese FinTech startups, from one last year to seven more recently, is remarkable and so is the relative authority of the UK, whose businesses make up almost a fifth of the world-wide list. But what can we take from the Top 100, and what consequences does this (Brexit aside) have for the future of FinTech?
The Uk still punches well above its weight when it comes to FinTech. Featuring in the Top 100 are four investment platforms: peer to peer lending platform Funding Circle, award-winning equity crowdfunding platform SyndicateRoom, property crowdfunding platform Property Associate, and online investment service Nutmeg. Of course, this is just the beginning. There are many more, and ACHeck21 aims to have itself as part of that illustrious list.
The impact on current banking players isn’t as well defined, although it truly is clear the digital revolution in financial services is under way. Digital disruption has the potential to shrink relevance and the purpose of now’s banks, and simultaneously help them create better, faster, more economical services that make them an even more essential part of everyday life for associations and individuals. To make the impact positive, banks are admitting they must shake themselves and Executive Summary recognize that waiting to increase and just navigating tides of regulation won’t shield them.
It hardly takes a crystal ball to predict the mobile phone will play a principal role in the development of the payments sector over the next few years. All of us understand that. What is up for debate is how people use their mobile phones to pay.
At the moment there’s lots of focus on “ pay and tap ” although the biggest impact of new technology may be away from Android and Samsung mobiles and those using iPhones. That’s a big deal, and if we look at little further down the road we can see the real tendency is to evaporate inside the programs that we’ll all be using for browsing and buying. Just as my card has vanished inside my Starbucks app and my Hailo app, will there be a time when we pay that we don’t think about numbers and cards and personal identification numbers?
Is FinTech making more of a difference to companies or their customers?
FinTechs who take their services direct to customers, like payments and P2P, are changing financial services for ever. But even if FinTechs aren’t directly democratising financial services, their inventions are helping to make those delivered by providers that are conventional safer, more accessible and more cost-effective. It may yet be early days in the digital banking epoch, but in our experience banks are only too aware that their customers, who additionally have entry to FinTech services that are independent, will finally determine their future.