Trust deficit means fintechs will fly
Leading fintech founders believe the fallout from The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is a great opportunity for them to wrest market share from the major banks.
They believe their existing focus on customers is a serious competitive advantage they can exploit as mainstream financial services businesses reposition their operations subsequent to the release of the final report last week.
Jason Wilby, director of insurtech Huddle Insurance, says for too long, there has been an imbalance of power in the financial services sector.
“Now is the time for new and emerging fintechs to flip the financial services industry on its head, for the benefit of customers not providers. To ensure we don’t continue on the same path, all businesses in the financial services sector need to shift their focus to winning back the trust of consumers, by placing them at the heart of their business model.”
He expects the fintech sector will increasingly provide a better way of banking. “The lesson for both emerging fintechs and the broader financial services industry is this: put people in control of their money, how it’s used and how it’s managed.”
It’s a sentiment with which start-up veteran Mick Liubinskas concurs. “The royal commission into banking represents an opportunity for fintechs to create products focused on customers rather than profits. These innovations still need to exist within a more regulated world, but the lack of care and respect shown for customers is an invitation to disrupt for entrepreneurs looking at this massive market.”
Pat Garrett, CEO of robo investment service Six Park, believes technology and innovation are critical parts of the solution to many of the problems uncovered during the banking royal commission, which means big things for fintechs.
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