FINTECH DISRUPTION EXPLAINED SIMPLY (WHAT, WHY, HOW IN 7 MINUTES)

whenever you hear the word fintech it's usually within the context of disruption fintechs are usually said to be driving disruption in the modern world and creating an entirely new industry which is the future of finance but whenever i think of disruption it takes my mind back to the numerous times in the past when large companies who were leading their markets lost everything because they failed to innovate and evolve blockbuster had the opportunity to buy netflix back in their early days of 2000 but even after the founders of netflix finally got an appointment with the founders of blockbuster and they use the last of their earnings to charter a flight to meet them the blockbuster guys effectively laughed them out of a meeting because they asked for 15 million dollars in order to sell netflix today netflix is worth over 250 billion dollars and blockbuster went bankrupt and are only down to one store that exists as a tourist attraction now it's a similar story with kodak in the digital camera kodak actually had the patent for the very first digital camera in 1977 but they were making so much money selling camera film that they allowed the new technology to gain traction without realizing that the market was going digital when they finally caught on they had to sell digital cameras at a loss but still weren't able to sell enough to keep up with competition kodak eventually filed for bankruptcy despite the fact that they essentially invented the very first digital camera now it's in line with this past occurrences that we're seeing the rise of fintechs who are on the same mission to innovate and change the financial services industry in this digital age and this is what i'm going to talk about in this video stay tuned [Music] hello friends my name is jeremy and on this channel i speak about digital strategy agile transformation and personal development welcome back the term fintech is simply the coming together of finance and technology to create new and innovative solutions for businesses and customers but fintech is not new in fact today all around us there are so many fintech innovations that we use on a daily basis without giving it much thought from making mobile money payments to taking digital loans to crowdfunding fintech innovations are very present in our day-to-day lives but why has this all become so relevant and popular now now in the past and i know this may be hard to believe but banks actually were the leaders of innovation in financial services yes i know in fact the very first fintech innovation was paper currency paper money or fiat currency back in the 11th century about a thousand years later we got the plastic debits and credit cards and shortly after that the very first atm was installed by barclays in the year 1967. now with the introduction of computers came online banking which gained a lot of popularity due to the internet and the growth of e-commerce but in 2008 due to the financial crisis banks were hit with strict regulation with fines and oversight which is when they dropped the ball and slowed down on innovating and it was formed then that smaller startups started springing up who are looking to unbundle the various aspects of banking and innovate around that using digital data and mobile technology to give customers a better all-around experience now because most fintechs only take one aspect of banking services in which to specialize they are able to make it as efficient and user-friendly as possible and usually at a lower cost to the customer which is why customers prefer to use their services over those of the banks now in ghana innovations such as mobile money quick loans zpay express pay slide pay are all from fintech companies that are fast growing and changing the local financial services landscape across africa and globally there are popular fintechs and innovations such as kenya's and pesa which led to the revolution of mobile money paypal was one of the first if not the very first globally recognized fintechs founded by elon musk and currently the largest fintech in the world is china's ant financial services which is a subsidiary of alibaba owned by jack ma fintechs are solving the problem of access to financial services and effectively closing the gap that has existed between the people and financial services now globally there are almost 2 billion people who still don't have access to a bank account and fintechs are bringing financial services to those people who previously could not access them giving them a chance to save a chance to borrow without having to meet the lengthy requirements of the traditional banks now fintechs are also changing the behavior of customers and raising their expectations of service today nobody wakes up looking forward to making that long commute to a bank branch only to wait in line only to see a teller or bank rep who is stressed by the sheer amount of their workload and barely looks up at you as they process your transaction in today's world the best form of customer service is self-service customers and consumers are now so used to being able to access their financial services anywhere and everywhere on their phones on their tablets or other mobile devices so customers expect the same level of service regardless of the institution and they always want a seamless mobile experience whether they're dealing with a small company or a large institution now this sends a message to the banks that there really isn't an excuse these days for not embracing the latest technologies and those who refuse or are slow to do so stand the risk of being disrupted by these fintech startups and lose both customers and business now finally fintechs are also fast becoming the preference for employment as opposed to the traditional financial services companies fintechs have become known for their unique and flexible work culture as opposed to the the rigid and bureaucratic culture of large companies people and graduates today prefer an environment where they can see the real impact they're making the lives of people and are able to innovate experiment and feel quickly in order to deliver the best service now as someone who has worked majority of my career in the bank and spent the last year working in a large fintech i can testify to both the pros and cons of working in both i'll be uploading another full-length video comparing working in a bank to working in a fintech so remember to subscribe and turn on notifications if you want to see that so friends we're in the fourth industrial revolution technologies like blockchain ai and augmented reality are being leveraged to provide a better customer experience for everyone fintechs and banks can achieve better results by collaborating rather than competing in order to provide us the best products and services the banking landscape is changing and it's important that we all change with it cheers guys

Channel: Jeremy Quainoo

Views: 46,822

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Id: tU7VeCVkvu8

Length: 7min 29sec (449 seconds)

Published: Sat Feb 06 2021