THE FINTECH DISRUPTION IN FINANCIAL SERVICES INDUSTRY

Abstract

Financial Technology is these days the most important focus area for global financial services industry. According to KPMG’s “The Pulse of FinTech” report, funding of FinTech reached a record high in 2015 totaling $19 billion. This was more than double 2014’s investment. At the start of 2016 over 30 FinTech startups existed, valued at $1 billion or more. Most established global financial institutions are actively engaging with FinTech in one way or another. In a very short span of timea, fintech companies have defined the direction, shape, and pace of change across almost every financial services sub-sector. Customers now expect seamless digital onboarding, rapid loan approvals, and free person-to-person payments— all innovations that fintechs made popular. And while they may not dominate the industry today, fintechs have succeeded as both standalone businesses and vital links in the financial services value chain. In other words, while fintechs have yet to disrupt the competitive landscape, they’ve laid the foundation for future disruption.