The value of the global financial technology (fintech) market was USD 112.5 billion last year. The same market is projected to grow threefold to reach USD 332.5 billion over the next six years. This growth is sending a clear signal to the banking sector: a new aggressive player has joined them at the poker table and, if they do not act, it will take their chips.
There are more differences than similarities between the operations of banks and fintech companies. However, while fintech is diligently learning from banks how to ensure customer confidence, as well as how to increase the security and reliability of their services, the banks have been looking at fintechs – and some are still watching – from a lofty position above.
The situation is clearly changing, and it is a big mistake to take a cavalier view of one’s more nimble and advanced competitors. The rapid growth of the fintech sector and of individual companies only confirms this.
So what style of game are the fintech companies playing? And what should the banks learn from it?
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