The FinTech Field of Engagement
by: Colin Canright
Financial services and the technologies that make it run are in a tremendous state of transformation, but not flux. All businesses and consumers need to understand the new landscape, and the FinTech Field of Engagement is designed to do just that.
This initial industry diagram shows horizontal channels and functions in the left column and traditional vertical market segments across the top, with their digital FinTech analogs in the same column but on the bottom, below the Mediators. The mediators include organizations that support, enable and perhaps thwart the industry, and they include the financial industry’s regulators.
It is no accident that the new FinTech categories appears below the regulatory line. This will not be the case forever, as both regulators and startups themselves shift positions.
On the consumer-facing segment, banks receive special emphasis, to show that their service delivery crosses most of the vertical markets. This is also designed to acknowledge their vulnerability to disruption, disaggregation, disintermediation or however you want to characterize it.
At the same time, banks are also in a good position to cooperate with digital FinTech innovators, as financial services, for the moist part, run on 30–40 year old systems. And the FinTech startups need banks as well, for their regulatory, data, and customer experience.
At the bottom of it all lies a new base of digital currency and crypto-finance technologies. This is a new base for finance and money, however long it takes to solidify in an extremely complex industry.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this innitial abstract are invited to share and like it so that it may be featured in a longer version that will published in the FINTECH Book due to be released November 2015.