Not a week goes by without a prominent fintech and disruption panel discussion with contributions oscillating between hype and fear, herbivores and carnivores, complacency and urgency.
There is also a plethora of publications going in all directions. Take these for example:
Frost & Sullivan’s report, Fintech in Australia — Trends, Forecasts and Analysis 2015-2020, predicts that “the Australian fintech sector is set to take $10 billion in aggregated revenue away from the big Australian banks and contribute $3 billion of new revenue to the Australian financial services sector from 2015 to 2020”.
Moody’s Research sees the estimated 4000 fintech start-ups “drive transformation rather than disruption for banks“. They consider a major competitive reversal for banks unlikely given the banks “large customer bases, deep client relationships, long lending histories and experience navigating regulatory bodies”.
A new Deloitte UK report concludes that fintech “marketplace lenders do not have a sufficiently material source of competitive advantage to threaten banks’ mainstream retail and commercial lending and deposit-gathering businesses”.
Who knows? Banks have a hard time with banking turning into software, data and algorithms. Fintech companies are also starting to experience the hard way the virtues of banking: risk, liquidity, capital, funding and regulation.
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