Is the surge of Fintech running out of steam?

Investors in start-ups are still waiting for the revolution

Is the surge of Fintech running out of steam?
Steve Randall
Technology is disrupting industries from hospitality to transportation but it seems the Fintech revolution may still be some way off.

Of course, there are those that are making progress and online banking is the norm for many of us; but the radical changes to the financial industry promised to tech start-up investors may have stalled according to a new report.

Global professional services firm Accenture says that the Fintech revolution is still on the horizon and notes that fundamental changes to market structures are underway.

The report says that in mature markets, the stream of capital available to the Fintech sector is moderating while the acquisition of customers remains challenging. Cost savings from being based in the cloud may only cover the necessary marketing spend.

China to dominate Fintech?
Accenture believes that the potential of Chinese Fintechs to dominate globally is low. Although firms there have made progress locally, they are operating in markets with large levels of customers who are new to banking.

There are an estimated 2 billion ‘unbanked’ people across the world, the report says, but most are in Asia with Latin America and the Caribbean, and Africa and the Middle East also having market potential.

To win in the Fintech game, players will need to operate cross-border but the actual business model that will prove successful will take time.

Accenture notes that the structure of the financial services market is already changing driven by economics, customer needs and regulatory responses to market failure.

It says that Fintech will likely be part of the end of vertical integration which will be replaced by new businesses providing customer access to financial services.

LATEST NEWS