FinTech has a 50-year history that most people don’t think about but use every day. In our digital era, consumer’s expectations are high and want products and services that make their lives easier. FinTech makes life better, faster and cheaper. Daily uses of FinTech include, PayPal, Apple, Google, and Amazon.
FinTech will always be a disruptor and big banks don’t like to be disrupted. In 2016, that fear has gone away. But, banks view SMB’s as high-risk, choosing to restrict investment, in terms of lending and services. What about the guy who needs $50K? On-Deck and Cabbage targeted SMBs to offer capital. Most of these companies have done partnerships with the Big Banks. Every two years, we’re doubling the amount of stored data. But what does all that data mean? Decisions used to take months and years. Now, we can to talk to Watson, get answers and make decisions quickly.
Now, that we have the technology and phones, our globally mobile and remote workforce is well served. People who don’t have access to financial services are a specialty of FinTech. If you don’t have credit, you can’t get a credit, so how do you establish credit? Companies are solving that problem.
Jack Welch said: “There are only two true competitive advantages, the ability to learn about our customers faster than the competition, and the ability to turn that learning into action faster than the competition.”