FinTech ecosystem
A disruption in one industry triggers a cascading effect on the others.
The World FinTech Report 2017 explains that FinTech has emerged as one of the most promising trends of the recent past. Increasing customer expectations, the expansion of venture capital funding, reduced entry barriers, and technology innovations have allowed the FinTech Industry to flourish in every sector. The methods of offering services through traditional firms have not changed much over the years.
The fast-changing industry and busy schedules of individuals have highlighted many loopholes in traditional financial systems. On one hand, traditional financial firms believe that their business is at risk due to FinTech startups; on the other hand, various traditional firms are partnering with innovative FinTech firms to tap the market. The following image maps the FinTech ecosystem with financial service areas:
The FinTech ecosystem consists of three entities:
- Hi-Tech Firms: It consist of two kinds...