Really.
I am waiting to see the effects of FinTech.
It was just a couple years ago when we could not read anything in the business press that was not FinTech related. There were thousands of start-ups and billion$$$ of venture money invested in the space.
We were sure to see a world run on bitcoins in place of real currency.
And Robo-Advisors would take over the financial advice segment of the markets.
And branches of banks would all but disappear.
The over-hype was way ahead of the marketplace as it usually is and the start-ups have become more integrated with traditional players rather than total market disruption. Even with all that and the sheer number of start-up players in the market, by now we would have expected to see some real impacts. But apparently not yet.
We took a look at the top Global 5000 players in each of the financial industry segments and measured the revenue growth over the past 2 years – most of these companies did quite well with revenue growing in solid double digits in most cases – not a sign that the FinTechs are taking away big dollars. Here are some of the key growth numbers:
- Bank of China 12%
- Bank of America 17%
- JP Morgan Chase 15%
- Wells Fargo 7%
- HSBC 15%
- Royal Bank of Canada 19%
- Toronto-Dominion Bank 34%
- Bank of Nova Scotia 24%
and some credit card companies
- Mastercard grew 39%
- Visa 37%
Other financial service firms include the following:
- BlackRock 30%
- Jones Financial 30%
- Arthur J Gallagher 24%
- PayPal 43%
- LPL Financial 31%
- Goldman Sachs 17%
- Charles Schwab 35%
- T. Rowe Price 27%
Obviously the revenue potential exists seeing this kind of growth among these multi-billion $$$ businesses.
Now – where are the FinTech companies? And when will we see the impact?