Banks are now playing catch-up with fintech when it comes to technology. Fintechs are setting the benchmark high. We are living in an age where the internet keeps changing our relationship with money every single day. Fintechs have taken advantage of this and built financial services based on the evolution of the internet. People now use their tablet, computers or smartphones to conduct financial matters.
VC-backed fintech companies raised a record series of funds last year and saw a string of fintech unicorn births. Fintechs have used the internet to provide faster, cheaper services. So now, how does this impact banks looking to digitalize their services?
The financial services industry is being transformed by insurgent startup companies. More than five fintech companies joined the unicorn status with values of over $1 billion each. As more investment flows into fintech and they become more mainstream with time, their market share of financial services will almost certainly go up, at the expense of banks. With regard to this, we can classify fintechs into 5 distinct categories
- Money transfer
- Equity funding
- P2P lending
- Mobile payments
- Additional fintech subsectors, which includes financial advice services
How does the future of a bank look like if they partner with these fintech companies to provide an array of new technologies and services? Or do incumbent banks have other ideas in going out on a limb and innovating their own?
This is what is going to be discussed on the very 1st session of the Millennial Banking Day on February 1st. Join us for a 30 minutes Q&A session with Varun Mittal from Singapore Fintech Association and Senthil Natarajan from OpenTap. They will be explaining their correlation of fintech investments and the huge impact it is going to have on banks through a transformational interplay this coming year. Read more on this webinar session here