For the past year we at ACE Consulting have been particularly interested in the future of banking. The fact is that the traditional way of banking is going to overgo heavy turmoil of disruption — and the shift is led by us, the millennials.
According to the study “The Millennial Disruption Index” which was conducted by Scratch, 73% of millennials would be more excited about a new offering in financial services from the Google, Amazon, Apple, PayPal or Square than from their own nationwide bank. Also, the three-year and 10 000 respondents study revealed that 68 % believe that in 5 years, the way we access our money will be totally different.
How has the Silicon Valley reacted to this? The tech giants Apple and Google have both shown interest towards the financial sector by launching Apple Pay and Google Wallet. The industry itself is nothing new as Peter Thiel’s and Elon Musk’s PayPal was the frontrunner of FinTech (financial technology) in the late 1990’s. But what is even more interesting is the new wave of FinTech startups. FinTech startups have established a totally new dimension to the market. Crowdfunding, peer-to-peer lending, robo-advisors and cryptocurrencies challenge the old status quo of the traditional banks. As the General Director of OP Bank, Reijo Karhinen says it is unsure which one the current financial brands will exists in five years”.
In the next blog post I will clarify the most disruptive and good-to-follow Finnish FinTech startups in 2016.