Fintech companies are no longer a bother to banks. Instead, they started to collaborate and work together. But, what threatens banks more now are their position which naturally lags behind tech giants in the development of tech products or services. It is pointed out that Amazon, Google and Facebook are the three companies that overwhelm the market in this areas of innovation.
Amazon and Facebook, do have the scale of competing even they are not specifically competing with banks. Their contact and closeness in consumer’s everyday routines, the amount of information they gather about them, and the reliance banks are forced to have on their business-side items that will affect the fate of the future of financial sector.
The coming impact between financial institutions and large techs prompts intense decisions for all organizations, end up noticeably reliant on large techs or risk to fall behind. Every single money related foundations should discover approaches to cooperate with vast specialists without losing their value proposition. All organizations hazard getting to be plainly reliant on large techs, which require the loss of some control over costs and data.
Google, Amazon and Facebook have another favorable advantages in any business condition; their distribution. They can offer anything around the world, from a dollar to a 300K easily where any financial institution can’t compete and win. They get the significant market share in a flash, additionally entangling their most strongest competitors. People are searching for alternatives to the banks, specifically, to look for new options as quick as possible.
This does not imply that new fintech companies will buried down in failure. Despite what might be expected, if new companies can cut out the ideal specialty in fintech, they’ll thrive out since banks are busy with Amazon and the rest of tech giants.