Big tech firms already control what people watch, buy and find online. Now, some of them are trying the waters of FinTech.
Even though the tech titans’ entry into the sector is easy to understand, it will nevertheless present FinTech startups with challenges.
Already, new ventures must raise capital and get customer traction for their services in order to have a chance. “Most smaller FinTechs unfortunately fail to climb or conquer this mountain, their innovation instead being gobbled up cheaply by the incumbents,” says Phil Smith, CEO of Embark Group.
"Tech titans have the advantage of being able to step around this mountain and then to leverage multi-geographic distribution scale on their own, without the need for help."
“Their well-tuned infrastructure for development, testing and deployment also means their ability to invest in R&D, to leverage grade A talent, and to deploy innovation at pace will make it almost impossible for small players to create their niche,” he warns. “Think Amazon – how many small startups do you see trying to compete in their space right now? The same will happen here in the FinTech world.”
Read the full article on FinTech Global
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