The raising of fintechs made a huge difference in the customer experience in the last decade, big banks were affected by these companies that now dominate the financial market, with valuations that surprised the whole industry.
The big event that changed the industry was adding technology for financial services. Before there were no investments in bringing a better customer experience to the market, the big banks and financial institutions lost the race there.
How did the technology changed the game for economical services?
Fintechs like Stripe, Square, PayPal and others saw the opportunity and brought to market what consumers needed. Now they are not startups anymore, they grew fast and became the largest players in the industry, what we call Big Fintechs.
Reaching their size made them slower than before, now they know they need to evolve their platforms through acquiring startups and young fintechs, that are already improving a lot the market that the previous ones were disrupting.
For sure is better to interact with these big fintechs now than using the big banks for financial services, but we already see a lot of young fintechs disrupting the industry again.
At the end of the day, financial services are present in everyone’s life and you keep like that, but the evolution of other industries is forcing fintechs to evolve accordantly and keep the track of innovation.
The need for innovation: a disruption factor
A couple of decades ago, big companies used to be skeptical about changes, then they became obsolete due to the lack of speed on the innovation part. They are now aware of how fast a new market can be created and generate well-funded unicorns that will compete equally for the same customer, with a better and updated technology.
There are new markets surging now, like metaverse, NFTs and others, not disrupting industries but changing the way we live and interact with other people. This is a disruption factor that demands innovations in the fintech space.
During our conversations with fintechs willing to disrupt the market, we are seeing them really open for changing everything internally to just keep track and deliver a better customer experience, or just to explore new markets that have great potential.
An open door to the future
In this space, it just takes a couple of years, or even less, for a fintech to become a unicorn and disrupt the whole industry again. The successful companies in this sector are just open for all the innovation available and to explore the new markets being created every year.
Just like what happened with the crypto industry, where the big banks were fighting to block the market and the opportunistic fintechs explored that well and became major players in this industry.
That’s why this industry is so hot and so exciting, enabling companies to really change the world.