As part of the Veber FinTech focus we will continue to share thoughts and discussions on the Strengths, Weakness, Opportunities and Threats of FinTech versus the current banking landscape.

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Recently we launched our Disruptive Technology series, The Globalisation of FinTech. We discussed the rise of FinTech technology versus the stability of the banking industry. We shared conversations with startups, investors, and customers and security experts via our recent white-paper, videos and startup interviews.

As part of the Veber FinTech focus we will continue to share thoughts and discussions on the Strengths, Weakness, Opportunities and Threats of FinTech versus the current banking landscape.
David Shearmon, CEO  shares with us his thoughts on our FinTech versus Banks debate.
breakfast-interview-2 
Strength
“I see FinTech (in its true meaning, Technology that will change the Finance Sector) as the most disruptive thing since the introduction of Credit Cards facing the Banking World. FinTech to me is about removing the ‘friction’ between consumers/customers and financial services, and remove friction between financial service organisations. I also see it as a big challenge to bank profits, and better value for money services to customers.
 
Weakness
“The banking world has been closed for many reasons, but with the social and technical changes we are now embarking on, the industries barrier to entry are down for new FinTech startups. The real challenge will be regulatory and the Banking World will need to defend itself against the new kids on the block eating at the same, very rich table. Banks, I feel, will move quickly to acquire FinTech start ups as a defensive strategy. They do not like competition or threats to their current cosy business models, this will stifle innovation.
 
Banks have always been cautious when it comes to anything, let alone fast paced innovation or cultural change. They are not culturally receptive to it at board level. If banks do not get to understand the wants and expectation from today’s and tomorrows customers, then they will be taken by surprise.
 
Opportunity
In my experience banks are only taking interest in FinTech because it is the new thing, has possible cost reductions and hip to be there, when it should be about taking advantage of new thinking and new technology to build operational models for tomorrow’s consumers and financial institutions.
 
It just takes an Apple to announce it has opened a bank based on new FinTech and the banking world would be rocked. Already Facebook is making a play and has it’s first license in Ireland. Lets face it, PayDay loans have been around for almost a decade, and despite high charges, the convenience and speed mattered more to customers, yet no bank I know of has offered a similar solution. We only have mobile payments because Apple forced banks to follow suit. So why did banks not spot these market opportunities beforehand?
 
Threats
My biggest fear is that FinTech apps are developed with such speed that little attention is paid to Security and regulation like GDPR. There seems to be too much focus on a quick development and ‘ship it out fast’ culture. We have seen problems in the IoT world and FinTech is far more attractive to criminal hackers. Investors, customers and companies are going to get seriously burnt unless they wake up to this fact.

“I couldn’t agree more in regards to the security issues with the quick development and ship it fast culture within emerging FinTech startups. Startups need to choose a consultancy with FinTech client experience during the conceptual stage to ensure the  understanding data protection, security, growth and constant innovation is considered throughout their journey.”

Tim Poultney
CEO Veber – Cloud & Dedicated Hosting Specialist

What are your thoughts?
Please share your responses to the Globalisation of FinTech debate with us. If you’re interested in hearing about the next Veber Disruptive Technology event please reserve your interest today.
  • FinTech industry expert video
  • View or download the FinTech vs Banks Consumer Survey 
  • View or download the FinTech Vs Banking presentation

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