FinTech is failing? Fat chance. | Currencycloud

FinTech is failing? Fat chance.

Written by: Stuart Bailey
Published on: February 10, 2017

So, I hear FinTech is failing.

Apparently, it’s experiencing “elongated fund-raising cycles, missed targets and mounting losses.”

Not only that, “contagion” from the online lending sector is supposedly spreading to other parts of the FinTech sector.

Steady on sailor.

All this is news to Currencycloud. And, no doubt, to other leading lights in the London FinTech field.

Let’s put aside the paper-thin case for the prosecution and focus on fundamentals.

In sector after sector, value chains are being nibbled at by nimble, fast-moving technology companies.

Whole industries are being reimagined.

Technology is improving exponentially in more than a few areas: from Machine Learning and Big Data to Blockchain and the Internet of Things.

Does the author truly believe that Financial Services is immune to these inexorable forces? What makes incumbents in the finance sector exceptional?

Yes, they have coachloads of capital. And, yes, some have legitimate competitive moats that will be bloody difficult to breach.

VC investment into our sector may indeed slow, due to Brexit, or because investors believe it’s overheated.

But just as King Canute couldn’t hold back the tide, Financial Services can’t hide from these technology-fuelled forces.

We will continue to build out APIs.

To make it even easier for businesses and consumers to move money across borders.

To innovate in the application layer and the infrastructure layer.

FinTech is failing? Fat chance. We’ve not even started.