Studying the properties and composition that make up the FinTech ecosystem
Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. My most recent experiment has led me down the not so linear path of neo-banks, not to be confused with Neo from The Matrix. Although a fully digital bank does sound a bit Matrix-esque… But I digress.
The concept of neo-banks is said to have truly started in 2009, with the UK as the standout. The FinTech-meets-science-geek in me not-so-secretly enjoys the fact that some of the first players were Monzo, Starling, and Atom Bank. While places like Europe and Australia have embraced these new challenger banks, the US still lags. However, are they finally ready for the spotlight?
When it comes to testing a new concept, it is best to follow the scientific method:
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Make an observation
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Ask a question
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Form a hypothesis, or testable explanation
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Make a prediction based on the hypothesis
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Test the prediction
Make an observation: We all remember the financial crisis of 2008. What started with a subprime mortgage crisis in the states, led to a full-blown international banking crisis with the collapse of the investment bank Lehman Brothers in September 2008. Observation? Scarred and unhappy people were going to shun the larger banks in favor of smaller, disruptive competitors.
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