Note from the Publisher: This topic has been covered somewhat in the past, but the article below is a great overview of the next wave of fintech entrants coming – major tech firms such as Google, Amazon, Facebook and the like. Legacy banks will have to contend not only with the wave of startups disrupting the industry, but these major players moving into their space as well.
“As if banks needed something else to worry about beyond flatlining profits, increasingly onerous regulation and being challenged by upstart fintech firms……..
As you survey what technology firms like Google, Facebook, and Amazon are doing, it becomes clear they’re all moving steadily into financial services. This isn’t an overnight move, but slowly and surely, these firms are developing, testing, and rolling out offerings in payments and lending.
……I think about three categories of competition for financial incumbents.
The first group are the innovation efforts from the incumbents themselves — firms like Capital One and BBVA that have declared digital transformation a priority.
Second are the fintechs –companies in which QED and our fellow VCs invest, like Greensky and Remitly and Blooom to name a few. The fintechs certainly get the most buzz, but it takes many years before they reach the scale to have an impact on incumbents’ bottom line.
I believe the most impactful competition will come from the Tech Titans, e.g. Google, Alibaba, Amazon, Facebook, Tencent, Apple and the like.”