Information Systems Integration – Tony Messina

Silicon Valley Disrupting Wall Street

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The FinTech revolution is transforming the financial services industry and it is only getting started. In 2015, investors invested over $19 billion into startups and have forced major banks to seriously re-evaluate the value of IT in their organizations. As start-up companies such as Credit Karma, SoFi, and Venmo gain marketshare away from big banks, the major institutions are looking to invest in new technologies and acquire fintech startups. A report by PwC states that about 50% of financial services firms plan on acquiring fintech startups in the next 3 to 5 years.Most of these financial services firms are leveraging fintech applications to enhance customer experience to better serve customers. From mobile payments and lending to wealth management and investment banking, fintech is making financial transactions simpler and easier, and giving more people access to services that were previously only available to higher income earners. Financial Services firms now need to reconsider viewing IT just as a supporter of the business, but incorporating IT into their business models. How do you guys see the Fintech revolution negatively affecting the major banks? Do you guys see the Fintech start-ups more as competitors or enablers of the financial services industry?

One Response to Silicon Valley Disrupting Wall Street

  • As someone who had the experience of working for a bank this summer, I noticed that there was an urgent need to keep up with many of the new fintech startups who have been able to get ahead of major banks as they typically move slower with developing new technologies. For instance, there is a lot of pressure to focus on our mobile app, as the bank understands it has to be an experience competitive to what the fintech startups provide. In my opinion, this is a good result as it increases competition and therefore improves the customer experience in the banking industry. Although it is extremely stressful for bigger banks, they have the resources they need to either buy out fintech startups or provide their own alternative solutions.

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