The FinTech Revolution | Coursera Community

The FinTech Revolution

  • 7 February 2021
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2015 - The year where Smart Phone's capability reached a new height. Faster processors to run complex applications. Cheaper internet plans and new mobile players which brought down the price of superior performing mobile phones. These were the main ingredient eats to boil the broth of new FinTech solutions.

History is witness where FinTechs that redefined the face of finance were created but soon failed due to the lack of the above-mentioned ingredients. Elon Musk's developed an online bank x.com in 1999. It wasn't successful and later got merged with PayPal.

The learning over here is to analysis if your innovations ecosystem is ripe enough to accept what you have developed. With no strong internet security in 1999, financial frauds occurring over the internet were high and the customer's faith in any online products was low.

Its been 20 years and we see a boom of FinTech solutions in developed and developing nations. The average man now has multiple options at hand to pay, invest or to receive a loan. Technology and behavioural network effects have truly supported the acceptance of new FinTech Solutions.

This brings a new thought in our mind. "Should every company out there be a FinTech firm on its own?" The basic utility of a FinTech is to help people in financing for what they want to purchase. If a firm creates its own FinTech solution to support its sales of product or service, then it will not only act as a marketing message for the company but also build a new customer base which were not initially capable of purchasing. Think about this like adding an incremental customer base by providing with a cutting edge FinTech solution.

The era of making people pay for your product is dimishing, the era of understanding and support your customer is emerging. Business Model will adapt and bring new value to the customers. Innovation in FinTech will lead to more revenue and a larger customer base.


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If this is being done by existing firms, one way to think of this is a new arm/ product of the company. But considering many existing firms rely on external expertise (other companies who have been doing this for long) for even basic IT/Security needs- I don’t if I would trust an in-house Fintech solution from let's say a big FMCG company so readily.

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