{"id":194,"date":"2016-11-18T06:58:46","date_gmt":"2016-11-18T06:58:46","guid":{"rendered":"http:\/\/www.jongore.com\/blog\/?p=194"},"modified":"2016-11-18T06:58:46","modified_gmt":"2016-11-18T06:58:46","slug":"the-moat-is-drying-rise-of-fintechs","status":"publish","type":"post","link":"https:\/\/www.jongore.com\/blog\/fintech\/the-moat-is-drying-rise-of-fintechs\/","title":{"rendered":"The Moat is Drying: Rise of Fintechs"},"content":{"rendered":"

For hundreds of years banks have been\u00a0secure from disruption. \u00a0They’ve maintained economic moats that would make any company jealous, including their access to government liquidity, branch networks, favorable regulation, and credit expertise. \u00a0Bar some near catastrophic disasters, they’ve managed the responsibility pretty well. \u00a0However, now their hold on financial services is falling apart. \u00a0Banks are under pressure by a new breed of financial technology companies, fintechs for short. \u00a0They are unbundling banks by focusing on niche use cases that the banks have become to big to devote expertise to. McKinsey recently released a report, here, which looks at seven critical changes in banking as fintech matures. \u00a0The best parts of the report, as usual for Mckinsey, are their great charts and graphs. \u00a0Below is my favorite.<\/p>\n

\"Fintech<\/a><\/p>\n

Think about a bank’s services as a pie, and each slice as a service. \u00a0The chart above shows how vulnerable banks actually are. \u00a0Fintech companies are aggressively targeting slices of the pie, and doing it with VC backing, intelligent solutions, and ambitious employees. \u00a0I think this is a great step forward for banking. \u00a0It’s a democratization of banking, where people can vote for services by selecting which company they deem best, not which bank they which they’ve used all their lives. \u00a0Disruption has a habit of sneaking up on us, and in this case, the banks were caught with the bridge down.<\/p>\n","protected":false},"excerpt":{"rendered":"

For hundreds of years banks have been\u00a0secure from disruption. \u00a0They’ve maintained economic moats that would make any company jealous, including their access to government liquidity, branch networks, favorable regulation, and credit expertise. \u00a0Bar some near catastrophic disasters, they’ve managed the responsibility pretty well. \u00a0However, now their hold on financial services is falling apart. \u00a0Banks are […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-194","post","type-post","status-publish","format-standard","hentry","category-fintech"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/comments?post=194"}],"version-history":[{"count":2,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/194\/revisions"}],"predecessor-version":[{"id":197,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/194\/revisions\/197"}],"wp:attachment":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/media?parent=194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/categories?post=194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/tags?post=194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}