The biggest banks on Wall Street are increasingly betting on their potential competition.
So far this year, major U.S. banks have participated in two dozen financial technology, or fintech, equity deals, according to a recent report by CB Insights. This is tracking to be on par with last year — which saw a 180% increase in bank investments from a year earlier.
In 2013, 68% of millennials believed that the way we access our money would be totally different in five years. So how are the money habits of this disruption-ready generation changing the way we manage money?
For years Fintech has been the hottest topic of discussion in financial services, with incumbents, regulators, and consumers all asking the same question: “Will small technology-enabled ‘fintech’ start-ups redefine the way that banks and insurers operate, and upend the competitive landscape of the industry?”
Deals to wealth tech startups hit a record of 30 investments in Q1’17 amid a number of new early-stage entrants globally. In particular, robo-advisors have been gaining prominence and taking on incumbents in nearly 20 countries around the world.
Recognizing wealth tech companies as a viable threat, many incumbents in the banking industryhave begun to partner with wealth tech companies and make investments in these startups.
Silicon Valley has seen an explosion of financial technology companies over the last few years, offering everything from credit score checks, to financial theft services, to password encryption for bank accounts. But they’re failing to target older Americans — the very demographic with the most money. Unfortunately, it’s old-fashioned Silicon Valley ageism that is getting in the way.
How do we know older Americans aren’t being reached?
