Ten years on from the start of the financial crisis in 2007-8, the focus of many policy makers has been to make banks safer and stronger. More capital please.
The introduction of reams of regulation across the banking and finance sectors has indeed been necessary to future protect both taxpayers and customers in the next wave of a crisis. The last ten years has also witnessed the emergence of another wave of change and disruption. The intersection of financial services and emerging technologies, in FinTech.
In fact, such is the penchant and excitement for FinTech that Goldman Sachs estimates that the startups driving the industry could be worth revenues around $5 trillion. These include ventures covering peer-to-peer lending, crowdfunding, payments and wealth management. And some of the players in these spaces are growing, and fast.
Certainly not to suggest that the death of traditional banks is nigh. Indeed, the current size of capital being lent on alternative platforms is miniscule. However, the emergence of FinTech and the proposed revolution it shall bring is worthy of celebration. It will force incumbents to cut costs and improve the quality of their service. Regulators should be happy. More innovation please.