/start ups

News and resources on fintech start-ups, scale-ups, hubs, accelerators, VCs and funding worldwide.

Discussion
Fintech is dead, long live Fintech
Ketharaman Swaminathan

Ketharaman Swaminathan

  Joris Lochy:  TY for your detailed response.  Fincumbents have been supplying technology to Banks for ages. That technology is meant to primarily benefit Banks. If Fintechs slip into Fincumbent mode, their technology will continue to primarily benefit Banks, as I pointed out in Fintech Shouldn’t Stop Chanting The Disruption Mantra. In other words, TBH, that kind of technology will NOT primarily benefit bank customers. If a Fintech operates like a Fincumbent, and still owns the customer relationship, that would be a genuine case of blurring the line. But I can't think of a single example of a Fintech that does that. In its present form, I'm not too gung ho about EU-style Open Banking doing *anything*, let alone something as drastic as redefining supplier-customer relationships.  BaaS captures the aaS zeitgeist very well. Ergo, I expect it to click in the market. But, as a repositioning of fairly old constructs in the fincumbent industry like "bank in a box", "covisioning", and "whitelabeled banking", I don't see it altering customer-supplier relationships in any significant way.  
Fintech is dead, long live Fintech
Joris Lochy

Joris Lochy

  Dear Ketharaman, Thanks a lot for your detailed and interesting comment. Fully agree with your statements, that the issue is that many Fintechs, being heavily backed by agressive VC funding, needed to say that they would disrupt (even kill) the existing financial services industry. This didn't happen and will not happen, in my opinion. Before Fintech, the line between banks and financial service software vendors was very clear. One was of supplier of the other. With many Fintechs first trying to go after the bank customers directly, but not succeeding, they piloted to a mixed solution of partnerships with existing banks, where they still partially manage the customer relationship. These kind of constructions has made the line blurry. Furthermore the evolution of Open Banking and "Banking as a Service" has resulted in also a move-away from the traditional customer-supplier relationship. Many of the traditional Fincumbents (which have indeed been around for 20-30 years) are also experimenting with new business models, like SaaS, BaaS, marketplaces, obtaining their own banking license... In the end it is in everyone's interest (especially the customer of banks) that there is cooperation, allowing to combine the innovative technology of Fintechs, with the banking expertise and customer base of the existing banks.
Top 5 White Label Crypto Exchange Platforms 2020
Robert Kroos

Robert Kroos

  Thanks for this info. if you want to launch a white label cryptocurrency exchange platform with updated security features in 2020? then contact@zabtechnologies.net
Fintech is dead, long live Fintech
Jayanth Jagadeesh

Jayanth Jagadeesh

  Very well articulated Joris.  Thanks for writing/sharing this elaborate analysis of the FinTech players and their POVs. 
Start Ups Analysis
See all Analysis »
On-Demand Webinar - How Banks in EMEA Can Thrive Amid Economic Uncertainty
/event information

On-Demand Webinar - How Banks in EMEA Can Thrive Amid Economic Uncertainty

Capitalising on agility to win the digital banking competition.

On-Demand Webinar - The SME Open Banking Revolution
/event information

On-Demand Webinar - The SME Open Banking Revolution

The SME space is ripe for disruption in terms of open banking services. Arguably more complex to serve, yet with the potential to yield great benefits for all concerned, the time has come for banks to step up and address the issues that their business clients grapple with, and serve them better.

Transformation and innovation
/market commentary

Transformation and innovation

Santander and TheCityUK, with support from law firm Shearman & Sterling, present a guide to partnerships between banks and fintech firms.