In round one, it all came down to cost of capital, but soon a second wave of fintech firms will properly exploit their technological advantage. [Read More]
Summary… * Machine-Made
The turmoil in financial technology — fintech — does not stop there.
Major banks also have online lending programs and bid for the same customers as fintech companies, increasing the cost of customer acquisition for the latter.
A second, more informed, wave of fintech companies will find the right recipe.
Second, fintech companies will transform the deposit taking space by creating differentiated offerings to help people to better manage their money.
While the potential of technology to transform the banking industry is real, the first generation of fintech companies has not fulfilled that promise.
Opinion… * Man-Made