Digital entrepreneurs and investors alike see the opportunity afforded for fintech. The staid business model followed by financial institutions will no longer insulate them from disruptive market entrants. The author of the article focuses on areas where we can expect to see increasing levels of business evolution.
We believe the two biggest long-term opportunities for startups are in replacing the banks and insurance institutions themselves. With new technologies, such as artificial intelligence and better data analytics, coupled with changing consumer mindsets, such as the growth of mobile smartphones and millennials hating traditional banks, these industries are ripe for disruption.
Mercator expects change that will come to the industry will be a gradual shift, with individuals increasingly able to customize their own mix of financial instruments and services to fit their own needs across their financial, personal, professional, and societal lives. It remains to be seen how the existing behemoths adjust to the ongoing expansion of innovative approaches in the financial service delivery enabled by technology. See our research note Payments Fintech Funding, Q1 2016 more additional insights.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group
Read the full story here
