If ever an industry was ripe for disruption, it’s banking and financial services.
Mired in centuries of tradition, protected by strict legislation, caught in the cross-hairs of the Banking Royal Commission, the rivers of smart money pouring into the rapidly emerging fintech sector clearly say change is not a matter of if, but when.
But what form will this change take and how will it impact on ‘Big Finance’ – the banks, wealth advisors and superannuation funds that rule the Australian economy?
The early evidence suggests that the innovation now occurring in fintech is more likely to reinvigorate the sector than bring the market leaders down in the way that disruptors have done in other industries such as transport (think Uber) or accommodation (Airbnb).
That’s because the financial incumbents are taking a partnership approach, looking to learn from the new players while often investing in the new technology and systems.