This article is written by Nardine B. M’barek, a Contributor Author at Startup Turkey.
Chris Skinner is an independent commentator on the financial markets and FinTech through his blog, thefinanser.com. He is Chair of the European networking forum The Financial Services Club and Nordic Finance Innovation, as well as being a Non-Executive Director of the Fintech consultancy firm 11:FS. He joined us during Startup Turkey 2016, and delivered a speech that he called ‘ 2016: The year banks disrupt FinTech’.
The world has been seeing a technological revolution lately that was called the ‘Third Revolution’. The fact that the internet was invented several years ago allowed a huge number of people to interconnect in an immediate and easy way. Furthermore, adding the mobile phone to the history of human creations made it a lot easier for people.
When you are connected on the network, you get access to splendid services online. It does not really matter where you are, or what language you speak, this has come as a way to unite all the world’s population under one umbrella, that is the umbrella of technology and innovation.
Not only you can connect with 7 Billion people all over the planet, but you can have access to what we call a ‘digital wallet’ that would make it possible for you to transact money, send money, buy and sell things online, disregarding the tiring and expensive processes or writing paper checks and sending them, not forgetting, of course, the time it takes to be done.
Mr. Skinner, an independent commentator on the financial markets and FinTech through his personal online blog, and the author of numerous books related to the same fields was one of our guests during Startup turkey 2016. He delivered a speech entitled ‘2016; The Year Banks Disrupt FinTech’ in which he dealt with several themes that are related to the FinTech industry, and how new emerging technologies are changing the world we know and making it easier to live in.
There are worthwhile companies that are being created in this new FinTech world and ecosystem. However, those are not the ones we should be looking for. What we should really be looking for are business models that actually work. There are in the matter of fact some of those such as Peer to Peer Landing; it is definitely a market place that will challenge the traditional financial system that we have known for years since it offers new kinds of credits and serves new markets that were underserved in the past, for instance, small businesses, startups, and even students. But it also serves core markets that banks serve which is why Goldman Sachs estimates that about 20% of landing that has been delivered by the banking system throughout the past years will move to these startup companies over the next five or ten years.
Statistics show that 1 in 10 of banks’ decision makers do not know what PayPal does, and most of them do not have any idea about what Unicorns do because they do not even look at them. What is disturbing and threatening in the banking system is that they are not looking, it does not mean that they have got to change or reimagine the whole system, but they have to be aware of what is happening since all of it is going to change. The change might be slow because money is more important than a few things, but it will end up changing anyway.