Disruptive Innovation: FinTech and the Potential to Revolutionize the Financial Services Sector
Could iPhone-based apps challenge the world’s leading financial institutions in the same way that Amazon revolutionized commerce and Uber up-ended the transportation sector? Innovation in the software-based financial technology (FinTech) sector has attracted significant ...
Could iPhone-based apps challenge the world’s leading financial institutions in the same way that Amazon revolutionized commerce and Uber up-ended the transportation sector? Innovation in the software-based financial technology (FinTech) sector has attracted significant attention because of its clear potential to disrupt existing global financial services models. Many analysts believe that Fintech will be the “next big thing” for tech firms and investors in Silicon Valley. Why? A new model for decentralized transactions, often based on blockchain technology, could replace cumbersome traditional processes that empower banks, insurers and old-school investors. Rapid growth in software solutions that facilitate person-to-person payments, crowdfunded equity investments and smart, self-executing contracts demonstrates that innovations in financial technology truly could revolutionize this sector. The FinTech Revolution will only occur, however, if this nascent technology overcomes challenges in cybersecurity, digital identity and legal regulation.