If you wonder what the fuss is about Fintech, here's a very simple thought: new companies are developing services at a rapid rate unthinkable to the world's banks. Investors like what they see, because even with failures there's a very strong chance of newcomers capturing enormous market share.
"Before 2010, I was writing a lot about technology, but it was all heavily geared towards regulation... Then at the start of this decade it pivoted, and I started writing a lot more about real innovations with technology and the surge of start-ups and new ideas that were coming out.
"What struck me is how fast fintech changes compared with the snail’s pace of banks. Banks talked about the Single Euro Payments Area and Target2-Securities for more than a decade in Europe before they were finally realised. They tell me it takes this long because all parties have to agree on everything before anything can start. "
The new generation of challenger banks aren't prepared to wait, and fintech investors are telling us they are quite right not to. By the time he's a bit more than half way into his article Skinner is suggesting that he - or you, if you wanted to - could open a full-service universal bank. He isn't joking. The regulators are worried about crime, and customer service, but they are not bothered about protecting the interests of the old guard.
If this makes you interested in fintech as an investment opportunity, we recommend you read Chris Skinner's article in The Banker.