Fintech sector gets cosier with big banking
When Silicon Valley first set its sights on the banking industry during the initial e-commerce wave of the early 2000s, the idea was to dismantle and destroy it completely. By 2010, PayPal (Nasdaq:PYPL) had more than 100 million users, and many were forecasting the demise of what appeared to be big banking’s outdated model for financial transactions.
But that narrative has changed, and financial technology (fintech) has found a sweet spot selling software to the giants – and, in some cases, working directly for them. However, speakers at last week’s BC Tech Summit “Fintech: From Bots to Blockchain – Innovation for a New World” panel discussion said it remains to be seen if the big banks can continue to keep up with the continuous change that technology brings with it. A recent survey by bank technology company FIS found that big banks are now failing to meet the needs of 75% of its customers. Panellist William Mougayar, author of The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology, said the big banks have consistently been slow to integrate Internet innovation and e-commerce into their operations.
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