FINTECH for dummies

By 29th June 2017 No Comments

Is FINTECH a buzzword or something BIG that is already disrupting the traditional financial sector?

Actually, the initial interest in FINTECH is widely attributed to the financial crisis in 2008 (so, not really new) leaving the public trust in the financial institutions at an all time low. Whether you like it or not, Fintech is all around us because we probably use an aspect of it everyday without even realising it. Moreover, this is likely to continue to increase, as Fintech touches not only the financial sector, but every business the financial industry deals with. Fintech simply becomes the norm in our society increasingly digitised. The new Fintech startups are small, agile, can innovate quickly and yes, definitively disrupt the traditional financial institutions. It’s like a steamroller we can’t stop. The time you went to your local bank and asked for an account, a credit card or a loan is over. Fintech’s like mobile payments, crowdfunding or money transfer services are revolutionising the way we are managing our business. Anyone can today easily make credit card payments or get access to data and information anywhere, anytime. We can even easily adjust our investment portfolio or make a transfer while hailing a taxi.

As a result, the emergence of the Fintech startups, which combine a more effective and imaginative use of technology, has surely created a wake-up call in the financial corporations that are largely unaccustomed to external disruption. A recent report from PWC (Published on 06 April 2017) has revealed that 61% of UK financial services industry leaders believe they could lose as much as 40% of their revenue to standalone Fintech firms, compared to 51% of financial services leaders globally. However, almost half of UK firms (47%) say they plan Fintech acquisitions over the next 3-5 years. 81% say they plan to initiate strategic partnerships with Fintech’s over the same period, according to the survey of more than 1.300 financial services industry leaders worldwide. Needless to say that this statement should be a great motivator to anyone looking to get a foot in the door of new opportunities. Once again, Luxembourg is ideally suited to help Fintech firms racing in the EU.

I would then suggest to the Fintech hunters trying to catch up shooting stars to keep an eye on the following fellows:

Action.ai (London, UK), Advice Robo (Amsterdam, Netherlands), Aire (London, UK), Algomi (London, UK), AQMetrics (Kildare, Ireland), Atom Bank (London, UK), Azimo (London, UK), Behaviosec (Stockholm, Sweden), Bonify (Berlin, Germany), Clearmatics (London, UK), Clearscore (London, UK), ComplyAdvantage (London, UK), Contego (London, UK), Credit Benchmark (London, UK), Curve (London, UK), Cuvva (Scotland, UK), DarkTrace (Cambridge, UK), Digital Shadows (London, UK), Ethereum (worldwide), FeatureSpace (London, UK), Fenergo (Dublin, Ireland), Figo (Hamburg, Germany), FundApps (London,UK/ in Luxembourg soon?), Iwoca (London, UK), Kantox (London, UK), LendInvest (London, UK), Mambu (Berlin, Germany), MarketInvoice (London, UK), Meniga (Rejkyavik, Iceland), Monzo (London, UK), N26 (Berlin, Germany), NetGuardians (Switzerland), Onfido (London, UK), OpenGamma (London, UK), PayKey (Tel Aviv,Israel/ in Luxembourg soon?), Privitar (London, UK), Qumram (Zurich, Switzerland), Railsbank (London, UK), Raisin (Berlin, Germany), RateSetter (London, UK), Revolut (London, UK – I’m a satisfied customer of this one!), Scalable Capital (Munich, Germany / London, UK), Seedrs (London, UK), SETL (London, UK), SolarisBank AG (Berlin, Germany), Suade (London, UK), Thought Machine (London, UK), Traxpay (Berlin, Germany), Trussle (London, UK), WeFox (Switzerland) and many, many others……..

Philippe Johan Castelain
Managing Director@Lys Trade