The world is witnessing a major shift in financial services.
Reduced trust in the global banking system, low interest rates, data flows, analytics and the growth of smartphones – all of these have created the enabling conditions for start-ups to attack the traditional financial sector. Backed by venture financing, many of these companies are causing a massive disruption in financial services. The bank is being systematically unbundled, and new players are attacking every segment of the market. These companies have improved service levels, reduced costs and dramatically improved the user experience. Term loans in the US are possible within a day, and one no longer needs to be an HNI for investment advisory services. $ 12 Bn poured into the sector last year (in the US alone), which also witnessed several Fintech IPOs. The Economist, rarely given to hyperbole, has called it the Fintech revolution.
This document is meant to provide a short overview of trends we see in the Fintech space. It is based on GFP’s proprietary research, projects and advisory relationships in the sector. Hopefully, it will give you cause for reflection, and insights for how your business, or portfolio, is likely to be impacted.