Financial Technology (Fintech) Is Causing Massive Disruption In The Wider Financial Sector: Strategy Management Report,

Assignment Context

Financial Technology (Fintech) is causing massive disruption in the wider financial sector. Previously dominant financial institutions are being directly challenged by a whole host of innovative financial technology providers. Fintech itself covers a whole range of areas such as Lending, Financial Payments, Insurance and Wealth Management. Globally, the total number of investments in this sector doubled from $50.8 billion in 2017 to $111.8 billion in 2018 (FT Partners Research, 2020).

One of the most prominent of these disruptive phenomena in the area of financial payments is that of ‘Challenger Banks’. These online ‘banks’ such as Revolut in the U.K, N26 in Germany and Alipay in China are experiencing exponential growth, tapping into consumers’ preference for mobile transactions and attracting a loyal consumer base.