Innovation around financial technology is opening up financial services to unserved demographics and segments of the market, as well as changing the way people interact with finance. Last year, the World Economic Forum’s Global Agenda Council on the Future of Financing & Capital released a report, titled ‘The Future of Fintech – A paradigm shift in small business lending’. On the back of an interview with bobsguide at the #ExecFintech event in Frankfurt, Daniel Drummer, who works for an international consulting firm and was one of the contributors to this report, shares his personal views about trends in Fintech and what’s next for banking and finance.
Fintech is a huge umbrella, what does it mean to you?
Fintech has become a truly global phenomenon. To me, it means applying the best technology we have available today to the world of finance and banking. In a sense, fintech is the attempt to design banking services as if we could literally reinvent them today – from a clean-slate perspective, without any legacy. First and foremost, it means that new and disruptive companies are entering the field, challenging the established banking model at its core. At the same time, fintech does not necessarily mean putting banks out of business. In fact, more often than not nowadays, we see that fintech can also mean cooperation or some form of coopetition between banks and startups.