If banks are investing heavily in fintech, is it really disruptive?
Lately I have been reading lots of news about how Wall Street Financial firms are investing heavily in the Fintech industry. If its not firms investing in the industry then the news tend to center around big industry names leaving Wall Street to take charge of fintech start-ups. Perhaps by coincidence I had started re-reading Christensen’s “The Innovator’s Dilemma” earlier this year and couldn’t help but notice the difference between a sustaining and disruptive technology in this context. I know that “disruption” is about as overused as “synergy” is but in this case it applies. If I am applying the definition of a disruptive technology, as defined by Christensen, correctly I tend to come to the conclusion that fintech is not a disruptive technology. I might be completely wrong or missing something here but it just seems that way and the investment of both people and resources from the “established” industry seems to confirm this. What are your thoughts? Is fintech really going to change the financial services industry? Am I just not seeing something here?
Look forward to your comments.