The problem with Fintech
Are fintech start-ups coming to disrupt Australia’s Big Four Banks? Not any time soon, according to Andrew Martin from Alphinity Investment Management. Fintech start-ups have attracted a lot of attention in recent years, and some of them have been quite successful.
However, there are a few key issues preventing these start-ups from having a serious impact on the banks:
- In a small market like Australia’s, it’s difficult for a fintech business to scale
- The market is controlled by a small number of powerful players
- Many consumers are apathetic about financial services providers
- In financial services, it’s particularly difficult to be a disruptor as consumers lack trust in newer companies.
Access the video below to hear how the major banks are dealing with the threat of disruption.