The effects of the ongoing coronavirus crisis are being felt in almost every sector. From retail and consumer packaged goods to entertainment, sports, and of course travel and leisure, every sector is being impacted in a different way and is facing down its own unique challenges.
Visa is acquiring American fintech firm Plaid in a deal worth $5.3bn in what represents one of the largest acquisitions in the space to date.
In January 2018, Open Banking went into effect in the UK. Under the regulation, regulated banks are required to let customers share their financial data with third-party providers through APIs.
Robinhood built a billion-dollar business by targeting young investors with a mobile-first, mobile-only offering that offers commission-free trading.
With the fintech revolution disrupting even the largest financial institutions, one might expect that small, community banks would have no chance of keeping up. But as it turns out, these institutions are playing a key role in the fintech revolution.
Financial services has arguably experienced one of the highest levels of digital disruption of any industry. From banking and payments to lending and insurance, no part of financial services has been left unscathed and hundreds of billions if not trillions of dollars is up for grabs.
Over the past several years, a clear digital revolution has been taking place in the financial services industry.
When it comes to how fintech and established financial institutions differ, much of the discussion centers around how firms are being challenged to improve their customer experiences and develop new financial offerings that appeal to changing consumer preferences.
Many online retailers in the US were dealt a blow when the Supreme Court ruled in South Dakota v. Wayfair that states had the right to force retailers to collect sales tax on purchases to customers in their states even when retailers do not have a physical presence there.
Much has been made of the threat fintech upstarts pose to big banks but even bigger threats might lurk in the form of Big Tech and Telecom companies.
In the past several years, established financial services firms have increasingly sought to partner with or even acquire fintech upstarts, many of which have been encroaching on territory they used to control.
The market for consumer loans in the US is booming. According to data from TransUnion, last year, the total amount of consumer loans outstanding hit a record $138bn, a 17% jump from the year prior.