The financial technology sector has exploded in the last decade. In 2017 alone, we saw investments in fintech rise to $12.85 billion. But with any new industry comes a little bit of doubt and scepticism.
This year Jobbio is sponsoring the Fintech Award at the DTS18 Women in Tech Initiative so we decided to debunk some of the most common industry myths out there.
Fintech companies are raging war on banks
For some reason, there are people out there who believe that financial technology and conventional banks cannot coexist. You’re either a fan of tradition or innovation, there is no in-between.
The reality, however, is very different. In fact, many fintech developments can integrate into existing systems and banks around the world are now actively investing in the field in order to remain relevant in the future.
Fintech companies do not have tight security
Let’s nip this myth in the bud right now. Fintech companies use the same standards of security and identity checks as the banking industry itself. If they didn’t they would have no customers left. There are always risks associated with online transactions but these dangers are very limited.
All financial technology companies are small startups
Wrong! Fintech companies range in size from multi-billion dollar companies to tiny startups working out of a spare bedroom. Stripe, which was founded by Patrick and John Collison in 2010 is now worth a staggering $20 billion which demonstrates the potential this industry has.
Of course, not everyone will be as lucky but it’s important that we do not assume that all fintech companies are low-level startups.
Regulation will defeat the industry
Every so often this myth decides to rear its ugly head. Yes, government regulation has halted various industries in the past but it’s important to remember that financial technology industry leaders actively work with governments to avoid such issues.
In fact, many governments are beginning to see the benefits of fintech and are discovering ways that they can use fintech to improve their administration.