PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Commoditization of Fintech

Tim Sloane by Tim Sloane
December 16, 2021
in Analysts Coverage, Fintech
0
Commoditization Fintech

The Commoditization of Fintech

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This article in Forbes by Benjamin Verschuere is a fun and worth reading. It argues that much of what’s new in Fintech is easily replicated, and easy replication moves the solutions in the direction of commoditization and a race to the bottom. Neobanks are just wrapping paper over the traditional banking systems, and BNPL and free stock trading are easily replicated business models:

“We can extend the trials and tribulations of neo-banks to other parts of the fintech industry. The commoditization trend in fintech can easily be seen in one of its most celebrated innovations: BNPL. While a cool feature, is there any differentiator between any player in that sector?

Similarly, commission-free trading apps are a great feature, but they have been replicated by many stockbrokers; legacy companies such as Schwab or TD have caught on to their younger fintech competitors.

Another characteristic of the intense competition fintech companies face is the fact that most of them make no significant profit. This again can ultimately be traced back to their lack of product differentiation. As clearly described in economic theory, the end game of commoditization is perfect competition, which means zero marginal profit. Fintech 1.0 could well be a real-life example of such a dynamic.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

Tags: BNPLFintechNeobanks
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: