Fintech has attracted massive attention, due in part to the enormous sums sucked in via investors – over $100bn in the past three years, according to numbers from KPMG and CB insights. In spite of all the excitement and cash, and predictions of fintech companies routing the traditional banks, fintechs have failed to date in taking significant business from the incumbents: accoring to the Economist Intelligence Unit, fintech companies have grabbed just a 2% market share. It’s absolutely harder to disrupt financial services than people envisioned.
Banks retain many competitive advantages, as well as the capacity for innovation. However writing off fintech would be premature.