Silicon Valley Disrupting Wall Street
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?