Fintech's Failure to Disrupt Big Banks
2025-01-26
Despite years of effort, Fintech companies haven't significantly disrupted large banks. A look at 2024 Q4 results from major US banks reveals their continued strength. While Fintech has made inroads in areas like payments and small business lending, core banking functions (deposit-taking and loan issuance) remain largely untouched. Large banks have invested heavily in catching up technologically, maintaining high profitability, and even surpassing Fintech in mobile user numbers. The author questions whether this disruption will ever happen, suggesting it may require more time, generational shifts, or a co-existence model.
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