In his latest article for PaymentsSource, Featurespace founder and CTO, Dave Excell, discusses the challenges facing fintechs as they jockey for a larger share of the financial services market.
The relationship dynamic between consumers and financial institutions is undoubtedly changing. A recent Bain & Co. survey found that 73% of consumers aged 18-34 would try banking with a technology firm, and PwC estimates 28% of traditional banking and payments business will go to fintech by 2020. As the global payments landscape becomes more ubiquitous, a power shift is on the horizon.
But before they can truly assume the scale of the incumbent financial institutions, Featurespace’s Dave Excell explains how fintechs will need to demonstrate the same compliance and risk competencies as their well-established counterparts, with fraud controls being one of the most consequential.