Fintech's disruptive inspiration
Fintech start-ups that achieved to pass the critical mass have exposed so far the necessary dynamism and innovation drive capable of disrupting the financial space.
Of course the time and the global conditions have been favourable to act for change, shift the old rules and deploy the digital breakthroughs to push the boundaries and evolve.
Fintech innovation is not about changing and tuning the existing mind-set of doing business but to recreate the rules of the game. Companies who were able to decompose their business ideas into problem solving tools, actionable items and impactful collaborations now became game changers and are shaping the future of finance.
The tools in the Fintech kit, which are needed to create, execute and grow are the customer focus, scalability of the business model, efficiency of frictionless processes, robust digital capabilities and problem solving instincts.
We believe that it is still too early to think that Fintechs will overtake the incumbents of the financial industry. At least for the next decade, this does not seem to be realistic. However how Fintech will affect and change the system will be very entertaining not only to observe but also to transform together with.
The financial institutions are driven with the ambition to lead the change and not to be crushed on the way. Through technology, shifting business mind-set and customer needs, they are willing more than ever to chase for efficiencies and growth. Two direct impacts emerge, value creation within the institution and financial inclusion.
Most of the value is created through reducing the time needed for correct decision-making, paperwork, risk reduction, adjusting products and services to the customer evolving needs. On the other hand financial inclusion allow people to reintegrate into the world economy empowering them to create value in return.
The gap between the top banks who invest in financial technologies, collaborate with Fintechs and open up for innovative thinking, mostly externalizing their innovation department and enhancing their collaborative moods and the banks who continue denying the disruption which is happing and will continue is widening.
Fintechs, focused in their business model shall be thinking on collaboration opportunities beyond their niche models or scaling challenges, they can take key roles in changing the attitude and point of view of the institutions that can help them to break their own bricks and mortar and open up to new possibilities with their own capabilities.
