Game of Fintech -Winter is Coming!
By Alia Noor, Associate Partner, Ahmad alagbari Chartered Accountants.
There was never a bigger or greater TV show in history,
Then the “Game of Thrones” -Spanned over Eight Seasons.
What had captivated the audience around the world for Eight Seasons?
The Story of battle at two Fronts….
War for control of the Iron Throne among powerful families – kings and queens, knights, and renegades wage war against each other in order to gain control over the mythical land of Westeros.
War against the Army of the Dead…The Rising force after millenniums which threatens the existence of living men.
The Season has ended …
WINTER IS HERE!…
AND SO IS THE GAME OF FINTECH!
The Global Financial Crisis and subsequent “Great Recession” influenced the younger generation of Millennials; the failures and shortcomings of some of the world’s largest and most venerated banks and financial institutions were highlighted.
The crisis led to a number of new restrictions in the form of new regulations for banks.
Today, Financial Crisis is seen as having taken place at the intersection between the ‘weakening of traditional financial services providers’ and ‘simultaneous rise of new technologies’ that led the Millennials to the development of what is now known as FINTECH!
These Fintech companies aim to provide clear alternatives to Traditional Financial Services Model and continue to help shape the financial services landscape of the future.
NOW POST PANDEMIC HAS BECOME -MOTHER OF INVENTION!
THERE IS NO SHELTER FROM THE WINTER!
This time It’s the Game of FinTech throne .New war zones are the industries Changing with speed.
Are changing the Game!
Redefine the Rules of the Game!
DISRUPT OR BE DISRUPTED !
ARE THE NEW RULES OF THE GAME!
What was considered New and Disruptive
Has become the Norm and Prerequisite for all Players.
Digital innovations are disrupting and reshaping the financial services space profoundly. Incumbents” and “Challengers” are evolving expectations of their “customers”.
New entrants, Start-ups and Attackers with forward mindset are looking to enter financial services using new approaches and technologies.They seek to build economic models similar to those of banks offering customers: accessible, transparent and cost-effective products & services.They have created a disruptive threat to incumbent banks, insurers and wealth managers by changing consumer priorities.
-CHRIS Skinner Blog
“There’s these “New Banks” that are
Just hoovering up all my lifestyle spending because
They’re so good at analyzing my lifestyle data.
They show me “what I spend, where I spend it, when I spend it” and “How much I’m spending” on each darned thing in my life.
“They’ve Become My Lifestyle Bank”
you’ve “become my boring old bank” ,
for my boring old bills, like utility payments and mortgage stuff.
The “stuff that is important but tells you nothing”
about “who I am or how I live my life”
Incumbents Financial Institution have responded to this competitive threat of disruption and are investing significantly in technology to improve performance.Capturing partnership opportunities, acquiring, or in-house developing new services to Survive or Thrive, like online investment advice, wealth management and digital branchless banking.
Encroachment from Technology Giants poses a growing Risk to the Traditional Financial Institution model. Total Fintech companies worldwide investments on the global market reached 135.7 billion U.S. dollars in 2019.
“True threat” to incumbents is coming from the “Big Tech Companies” created through tech giants such as GAFA, Google, Apple, Facebook and Amazon. With their vast networks,the bigtech-led challenger banks are perhaps incumbents’ most daunting competition.
Today, “PayPal” and ”Amazon pay”, “Google pay” are some of the largest lenders in the world.
“Uber” has announced launching Uber Money, principally for use by Uber drivers. This positions Uber to branch into current accounts, payments and settlements in the future.
“Apple” paired with “Goldman Sachs” have launched an Apple-branded credit card.
“Amazon” is leveraging a “JPMorgan” Chase wallet.
“Google” has partnered with “Citigroup” and “California credit union” to offer consumer checking accounts in 2020.
Despite initial setbacks, “Facebook” is continuing to push forward with its digital coin offering, ‘Libra’
“It is not the strongest of the species that survives,
Nor the most intelligent;
It is the one most adaptable to change.”
— Charles Darwin
WINTER IS HERE!!
RIGHT HERE, RIGHT NOW!!
HOW WILL YOU STAND OUT IN THE CROWD!!
Keep following to find out more about the “Game of FinTech”………
- UAE-Ministry of Finance decision on transfer pricing documentation requirements for corporate tax purposes - May 11, 2023
- UAE-Ministry of Finance issues Ministerial Decision on Exempt Persons for Corporate Tax Purposes - May 10, 2023
- Does meeting UAE Domestic Tax Residency criteria mean Corporate Tax Applicability? - May 2, 2023
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