{"id":14412,"date":"2020-01-30T07:25:47","date_gmt":"2020-01-30T07:25:47","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=14412"},"modified":"2020-01-30T07:25:47","modified_gmt":"2020-01-30T07:25:47","slug":"why-the-fintech-revolution-has-not-turned-the-financial-industry-on-its-head","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/why-the-fintech-revolution-has-not-turned-the-financial-industry-on-its-head\/","title":{"rendered":"Why the FinTech revolution has not turned the financial industry on its head"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">For years, many doomsayers have predicted that this rise of FinTech will lead to the inevitable fall of traditional financial institutions. Yet, this has not been the case. While some of this is due to traditional financial institutions themselves working to develop their own FinTech solutions, there are also a few key reasons why FinTech has yet to destroy traditional players:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Not ready yet<\/b><span style=\"font-weight: 400;\"> \u2013 truly revolutionary FinTech services require the restructuring of a business model that has been operating for many years. Few are truly ready for this, especially given the costs to do so.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Trust<\/b><span style=\"font-weight: 400;\"> \u2013 new players, although ushering in innovations and pushing the financial services industry to adopt new ways of doing business, are typically not widely trusted until they can demonstrate that they belong. After all, you can trust a child with a lot of things, but you can\u2019t trust them to drive until they have the experience.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Given that traditional players are still here, let\u2019s look at a few revamped forecasts:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There will be no simple replacement of old leaders with new ones as IT companies will not be able to crowd out traditional financial institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Those who invest heavily in creating controlled startups or aggressive buying up FinTech companies will also lose if they fail to rebuild their own DNA.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Those who will be able to build workable collaborations that focus on individual tasks and audiences will benefit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Forms of cooperation will be very different, but the main factor will be the availability of independent, mutually supportive partners.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Collaborations will become seamless, with users often not even knowing that they are using the services of different providers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The financial and technological institutions that can close a significant part of the market and effectively use the data they accumulate will have a huge initial advantage.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Regulations and the further development of technologies will make the giants advantage in working with data and servicing closed payment (transactional) systems temporary.<\/span><\/li>\n<\/ul>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-14412 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='Open APIs driving the uberization of payment services'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/open-apis-driving-the-uberization-of-payment-services\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2018\/08\/open-api-payment-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-10531\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-10531'>\n\t\t\t\tOpen APIs driving the uberization of payment services\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='Financial Institution Positioning for Long-Term Post-Crisis Success'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/financial-institution-positioning-for-long-term-post-crisis-success\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/12\/d700e3b9-5d96-e344-814a-6e11673c84441-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-16496\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-16496'>\n\t\t\t\tFinancial Institution Positioning for Long-Term Post-Crisis Success\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='COVID-19 might finally bring FinTechs and financial institutions together'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/covid-19-might-finally-bring-fintechs-and-financial-institutions-together\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2020\/05\/digital20agreement1-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-14959\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-14959'>\n\t\t\t\tCOVID-19 might finally bring FinTechs and financial institutions together\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>For years, many doomsayers have predicted that this rise of FinTech will lead to the inevitable fall of traditional financial institutions. Yet, this has not been the case. While some of this is due to traditional financial institutions themselves working to develop their own FinTech solutions, there are also a few key reasons why FinTech &hellip;<\/p>\n","protected":false},"author":5,"featured_media":14432,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[49,75,335],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14412"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=14412"}],"version-history":[{"count":1,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14412\/revisions"}],"predecessor-version":[{"id":14413,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14412\/revisions\/14413"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/14432"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=14412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=14412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=14412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}