Found this from another Twitter feed and really enjoyed your perspective. I would add a couple of thoughts — this is most definitely a consumer FinTech view, the same is not true in B2B at all, because you don’t need critical mass (the clients each come with their own user populations), yields are higher (you’re not trying to monetize, you’re piggy backing business that is already monetized at volume), and frankly, a lot of the services to business are ripe for disruption so it’s not hard to shift behavior (Stripe a great example). In turn, there has been plenty of M&A in the B2B space, particularly amongst payment processors — so right the way through your piece the caveat is that these are consumer FinTech health warnings.
The other point is regarding lack of bank acquisitions. Besides the fact that for many banks these are far lean(er) times, having regularly seen countless banks at Finovate pitches, I know they scour the new FinTech scene, but my sense is that they are at best shopping for some white-label tech to licence or pilot initially. It’s always the startup that has created a white-label personal finance manager that is surrounded by bankers, not the one aspiring to be a consumer brand itself. After all, a bank is not going to have many relevant opportunities to acquire for users/scale, so acquisitions will be product/tech related, and given that there are startups out there building white-label tech to license, it will be easier for a banks innovation agenda to pilot/partner on some of this long before M&A of a consumer product is relevant. The only mystery in this is how Monitise failed to (excuse pun) monitize that role.