Reports 16 Min Read

Financial institutions, fintechs and the gray area

Industry perspective and strategies for growth in a shifting financial services landscape

When neobanks and other fintechs entered the market, they drove both disruption and innovation with offerings that delivered greater convenience and choice for consumers. These new entrants were initially viewed as direct threats to market share by brick-and-mortar retail banks. However, in recent years, the relationship between these players has evolved to one of symbiosis as traditional and emerging players realized that they—and their customers—could benefit from each other’s unique strengths.

At the same time, many of the players have begun to offer the same or similar types of services, such as checking accounts, savings accounts, brokerage services and even money transfer capabilities. Digital wallet platforms and peer-to-peer (P2P) apps, for example, typically started with a single offering, and many have now begun to expand their services.