FINTECH:“New companies have the technology, incumbents have the customers,”
“Smart incumbents will acquire technology cheaper and faster than new companies can acquire users, and the FinTech world will sell [its technology] to them.”
The larger firms that survive will be those who “leverage their capital clout and customer base to either develop their own offerings or absorb successful entrants,” said another.
Only a few newcomers will make it big, another cautioned, but those that do will succeed in disrupting the market with major changes to payments, lending, investment and financial research.
Another of the participants, all of whom took part anonymously, said established financial services firms were just waiting to “move in and pick off the most successful companies and technologies once they have reached maturity and been tested.”
…experience of established firms is that tradition and established procedure often triumph, “even if the company claims otherwise.”
Another said traditional financial services players have at least one advantage in that their customers are generally conservative and risk-averse, preferring “to choose innovations that are proven and backed by familiar providers.”
“FinTechs can make great strides in many routine tasks,” added another. “But they cannot take over the core of banking, the personal consultation between client and adviser based on trust.”
With London’s unrestricted access to the EU financial markets at risk, the same participant named New York as one of the places most likely to reap the rewards.