Are fintech start-ups coming to disrupt Australia’s Big Four Banks? Not any time soon, according to Andrew Martin from Alphinity Investment Management. Fintech start-ups have attracted a lot of attention in recent years, and some of them have been quite successful.
However, there are a few key issues preventing these start-ups from having a serious impact on the banks:
- In a small market like Australia’s, it’s difficult for a fintech business to scale
- The market is controlled by a small number of powerful players
- Many consumers are apathetic about financial services providers
- In financial services, it’s particularly difficult to be a disruptor as consumers lack trust in newer companies.
Access the video below to hear how the major banks are dealing with the threat of disruption.
For further insights from Alphinity Investment Managers, please visit their website