by Business Insider Intelligence
Fintech is the emerging financial system for
Sustainable Development, and will permeate every
phase and level of the financial world.
Further, all nations of the world are embracing
Fintech, from China to Europe to the entire Islamic
Fintech broke onto the scene as a
disruptive force following
the 2008 crisis, but the industry's
influence on the broader financial services system is changing.
The fintech industry no longer stands clearly apart from financial
services proper, and is increasingly growing embedded in mainstream
We're now seeing the
initial stages of this transformation.
For instance, funding is growing more internationally distributed,
and startups are making necessary adjustments to prove
sustainability and secure a seat at the table.
Most fintech segments in
the ascendant a year ago have continued to rise and grow more
valuable to the broader financial system.
fintech categories have had to make adjustments to stay on top.
New subsegments are also appearing on the scene - such as
digital identity verification fintechs - as new opportunities for
innovation are discovered.
Significantly, incumbents are responding more proactively to the
rising influence of fintech by making updates to their
consumer-facing channels, back-end systems, and overall business
Most are realizing that
the best way to adapt is to work alongside the fintechs that are
transforming the financial services environment, either by
partnering with them or acquiring the startups entirely.
As fintech's power grows,
incumbents will have no choice but to change in order to stay
relevant and competitive.
All around, fintech is
becoming embedded in mainstream finance.
Business Insider Intelligence, has written the definitive
Fintech Ecosystem Report that,
looks at the
shifts in the broader environment that fintechs operate in,
including funding patterns and regulatory trends
adaptations that some of fintech's biggest subsegments have
had to make to secure a foothold in the financial services
discusses how the
continued rise of the fintech industry is pressuring
incumbents to make fundamental changes to their business
models and roles.
It ends by assessing what
a global economy increasingly influenced by innovative fintechs will
Here are some key takeaways from the report:
industry is far more than a group of digitally native,
consumer-centric startups, although they are, in many ways,
becoming the new face of financial services.
clear that fintech no longer stands apart from financial
services proper, and is morphing into an integral part of
the financial system.
To secure their
position in the mainstream economy, some of the main fintech
subsegments have had to adjust their business models. These
include neobanks, robo-advisors, and alt lenders.
categories, meanwhile, have instead found that current
conditions are well suited to their original models, and are
seeing largely smooth sailing, like regtechs, insurtechs,
and payments fintechs.
dynamism is still alive in fintech too, with new categories
influence of fintechs is having a dramatic effect on
incumbents, from banks to insurers to wealth managers,
pushing them to respond proactively to stay relevant.
reacting to changes wrought by fintechs on three key fronts:
the front end, the back end, and in their core business
incumbents and fintechs are converging on a digital middle
As this happens,
the fintech industry is on the cusp of becoming an integral
component of the broader financial services ecosystem.
But it will
likely first have to go through a complete credit cycle, and
survive an economic downturn like the one that set the stage
for its arrival in 2008, for this to happen.
Companies included in this report:
Robinhood, Coinbase, Kreditech, 10x Future Technologies, TDW.cn,
Dianrong, Zhong An, Prosper, Qudian, Lending Club, OnDeck,
Lu.com, One97, SoFi, Greensky, Oscar Health, Credit Karma,
Zenefits, Avant, Tuandaiwang, AvidXchange, Clover Health,
TransferWise, Funding Circle, Kabbage, Rong360, Symphony,
51XinYongka, Suishou Technology, Janalakshmi, Upserve, bread,
Dashu Finance, TNG FinTech Group, Toast blend, Plum, Oval Money,
Monzo, Tink, Atom Bank, Starling Bank, N26, Tandem, Monese.