FinTech is a generic name for newly emerging companies which represent a significant, and potentially industry disruptive challenge to incumbent financial services providers.
- They are challenging existing providers because they are able to deploy innovative new technologies, business models or provide new products and services that challenge what has traditionally been offered
- These technologies are opening up new markets, providing alternative, cheaper, more customer- centric, flexible and transparent products, services and pricing models often accessed over smartphones and other new mobile devices. The 2007 financial crisis and its aftermath have created huge opportunities for new technology savvy providers more in tune with the values of Millennials and younger consumers generally.
- The crisis has undermined confidence in the financial services industry and exposed severe weaknesses in the business model of the main incumbents, creating fertile ground for new businesses seeking to create alternative ways of providing services
- These new solutions are more transparent, more responsive to consumer needs, and more aligned with the current political and regulatory climate where balance has shifted dramatically away from large producer interests to the customer, and the wider economy and society