All The Fintech - 4.26.18 - New Fintech Stack
I was chatting with a founder of a fintech company last week in New York and one of their comments really stuck out to me. "Financial services is the only space I know where as a client, I literally have to spend a huge amount of time to convince vendors that I want to pay and use their services." Vendors and companies within financial services have historically been able to protect their revenue due to how difficult it is to rip out a financial provider as well as the dearth of selection. Nevertheless, we're starting to see a shift across enterprise technology where increasingly buyers have more complete information, and the buying decision is less around who you know versus actually creating value. Over the past few years, a new financial stack is starting to slowly emerge for building new products in fintech (often powered by APIs), and I think it's only a matter of time before large incumbents will be forced to be more transparent in regards to pricing, process, and integration effort.