The fintech industry finds itself at a crossroads right now. Despite the number of financial institutions willing to work with startups increasing every quarter, there is still a large battle ahead. Shaking up the financial industry is a delicate balancing act. Although collaboration is the buzzword right now, the battle lines between banks and fintech startups have not faded by any means.
Banks collaborating with fintech incumbents is a positive trend. Entrepreneurs can use all the guidance they can get during the initial stages of their venture. Additionally, a willing bank partner can help with funding and other strategic needs over time as well. But despite this amicable situation, fintech and traditional finance remain at odds with one another.
Fintech Is Here To Stay And Should Not Be Ignored
To put this into perspective, the financial sector has an annual revenue of roughly US$5tn. As is always the case, they want that number to keep growing. To do so, they partner with fintech startups to realise new ideas and improve existing infrastructure. Combining the US$5tn market with a US$20bn fintech industry can lead to exciting developments.