Celebration of Scholars
The FinTech Effect: An Analysis of the FinTech Revolution and its Impact on Retail Banking and Financial Services
Name:
Michael Suazo
Major: Marketing
Hometown: Wheaton, IL
Faculty Sponsor:
Other Sponsors:
Type of research: Senior thesis
Abstract
Industry disruption caused by financial technology, commonly referred to as FinTech, has caused a major shift in the design and delivery of financial services. This industry has reimagined how consumers buy and use financial services. This industry has changed the media from which services are accessed. From 2008 to the present, the FinTech industry has raised a high volume of capital investment. This high volume has allowed FinTech companies to grow and capture market share from banks.
The objective of this case study is to provide insight into where the FinTech industry is headed based upon current trends in the industry. It provides a top-level overview of the market strategy of FinTech companies and an in-depth analysis of three technology firms that have made an impact on financial services. The current market trend strategy of FinTech companies is specific targeted towards one area of banking, leaving banks vulnerable to outside competition not previously thought of as a threat. In future, banks will need to improve their market strategy toward younger generations in order to maintain their positioning within the industry. This is especially true for the community banking industry. Right now, FinTech is the largest existential threat to the community banking industry
Banks have been too focused on satisfying the mainstream market, allowing FinTech to capture the low-end market and expand growth from the bottom up. Right now, the millennial generation is demanding better technology in the use of financial services that banks are struggling to provide. FinTech is also having a big impact on poor, developing countries around the world because banks have left millions of individuals without the resources to obtain financial services where there is still demand for them. FinTech is using technology to reimagine how consumers in these low-income areas send, receive, and save money which is creating a standard of living that has never been experienced before.
Submit date: March 25, 2019, 9:25 a.m.