I am betting on banking, not fintech
- Fintechs seem to have forgotten the fundamentals of banking; how to create value for customers whilst extracting value to make the bank a revenue-generating entity.
- Having your data stolen because the platform holding your life savings hasn’t invested in protecting itself from cyber attacks.
- Having chosen a fintech to hold all your business banking funds, and the platform has such poor governance or understanding of treasury management that they cannot release YOUR funds to cover YOUR payroll because it hasn’t understood the difference between investment funds and customers’ funds.
The author emphasizes the importance of combining banking knowledge and experience with technology to build successful financial services institutions. They criticize fintechs for focusing too much on customer acquisition without prioritizing value creation and proper governance. The author also highlights the potential of technology in enhancing banking, particularly in areas such as risk management, cybersecurity, operational efficiency, and corporate governance.
