Recognize any of these companies?
- Venmo
- Moven
- Lendio
- Betterment
- Kraken
You should and there are 100’s others just like them. They are the new breed of FinTech companies and they have their eyes on the rich & lucrative financial markets of all types services and applications serving this industry segment.
A technology play into existing markets is certainly not new — look at Uber, Netflix, Amazon or AirBnB among many others and we quickly understand the effect and outcomes of new tech firms into existing markets. But in the financial markets, this has not yet happened. Now, here comes the new fin tech players like those mentioned above.
So, what’s at stake here? In a word – -plenty. The financial markets make up the largest industry by almost every measure.
Whether it be banking or financial advisors or the payment infrastructure of how money moves there are plenty of players and lots of fees and sources of revenue to go around. Consider that the total revenue of the Global 5000 companies is $55.5 trillion. The financial services industry is $11.1 trillion or 20% of the total market.
It outpaces all other industries – see the chart below showing the total revenue of Global 5000 companies for all industries. So for every, HSBC, Prudential, Bank of China, Bank of America, Visa or Fidelity — there are a number of FinTech start-ups (many of them well funded) looking at those trillions and working to reshape the dynamics in the industry.
