FinTech maturing but not withering

On this First of May, when all flowers buds are maturing, I realize that the FinTech family has also matured. Matured in the meaning of “ripe” and no need to wait and expect more any longer.

The seven families[1] are now known, and apparently will not become eight. We are even seeing combinations between these families. Indeed, after these families matured, there was a transformation in the looming threats and the opportunities of mixing offspring.

What are those families you may ask?

I am among those who believe that the seven families are Infrastructure & Software, Data & Analytics, Investment Management, Insurance, Capital Raising, Savings & Lending and Payments (including Crypto-currency).

For over 10 years, we have compiled these seven families and some have grown much bigger than others. What we are seeing now are combinations of what underlies beneath, no new families.
The FinTech town is mature enough, each family with 10 offsprings on average.

We used to count among the biggest threats: RegTech[2] and Legacy Bankers. These threats have loomed for a time, but technology outgrew the threat. The growth unveiled new and higher shadowing threats, the trillion dollar behemoths, the Gafams[3] and the Batx[4] that soon would be. These tech giants will soon conquer the FinTech market, uprooting the legacy banks and bypassing the regulations. Mark Z. announced just yesterday, live on F8, that Instagram would be used for payments.

The Gafams and Batx of the world are becoming the biggest new banking service providers; it is a fact, just like what happened to the Advertising market and many other industries.

The opportunities now lie in the combinations of the FinTech building blocks either within the families or with non-FinTech products and services, crossbreeding. The picture is becoming clearer; the Gafam and Batx clubs will have their growth trajectory and lifecycles, all the rest will have to be creative enough to prosper.

Combining any two or three might be a new success story, for example Peer2Peer Insurance + Mobile Payments + White Label Platforms = New FinTech Product bred from three of the seven families. Any other combination among the 70+ could work.

Maturing FinTechs with its known Families and Boundaries, even with threats that will remain part of our lives, even if the Gafams and Batx are here to stay, will not mean that the FinTech flower bud is withering.
In fact, look at how we can cross these flower buds together and grow new products.


[2] Regulation Technology: financial and telecom regulations.

[3] Google, Apple, Facebook, Amazon and Microsoft.

[4] Baidu, AliBaba, TenCent and Xiaomi