Abstract
Until recently, most of the analysis into the potential for competitive disruption in financial services revolved around new fintech entrants as the key catalyst for change to the structure of the financial ecosystem. But today, more and more attention is being given to a potentially much more disruptive set of new entrants: ones who bring vast sums of capital and unparalleled technical capabilities as well as enormous pre-existing user bases who engage with them via digital channels on a daily basis. These are, of course, the world’s large technology companies. A growing number of financial executives fear that their entry into financial services as direct competitors is simply a matter of time.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Change history
02 July 2019
This book was inadvertently published without updating the following corrections:
Notes
- 1.
“About Revolut.”
- 2.
Frederic Lardinois, “Gmail Now Has More Than 1B Monthly Active Users,” TechCrunch, February 1, 2016, https://techcrunch.com/2016/02/01/gmail-now-has-more-than-1b-monthly-active-users/.
- 3.
Brett King, Bank 4.0: Banking Everywhere, Never at a Bank (Marshall Cavendish International Asia Pte Ltd, 2018), page 136.
- 4.
Hugh Son, “Consumers Want Tech Firms to Take on the Banks,” Bloomberg, November 20, 2017, https://www.bloomberg.com/news/articles/2017-11-20/banks-beware-most-customers-suspect-tech-can-do-your-job-better.
- 5.
Stella Yifan Xie, “Jack Ma’s Giant Financial Startup Is Shaking the Chinese Banking System,” WSJ Online, July 29, 2018, https://www.wsj.com/articles/jack-mas-giant-financial-startup-is-shaking-the-chinese-banking-system-1532885367.
- 6.
Clay Chandler, “Tencent and Alibaba Are Engaged in a Massive Battle in China Play Video,” Fortune, May 13, 2017, http://fortune.com/2017/05/13/tencent-alibaba-china/.
- 7.
Pengying, “China’s Mobile Payment Volume Tops 81 Trln Yuan,” Xinhua, February 19, 2018, http://www.xinhuanet.com/english/2018-02/19/c_136985149.htm.
- 8.
“2017 Mobile Payment Usage in China Report,” IPSOS, August 2017, https://www.ipsos.com/sites/default/files/ct/publication/documents/2017-08/Mobile_payments_in_China-2017.pdf.
- 9.
“Bank of America Surpasses 1 Million Users on Erica | Bank of America,” Bank of America, accessed January 6, 2019, https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-surpasses-1-million-users-erica.
- 10.
Yue Wang, “Ant Financial Said to Close $150B Funding Round,” Forbes (Forbes, May 29, 2018), https://www.forbes.com/sites/ywang/2018/05/28/ant-financial-said-to-close-150-b-funding-round/.
- 11.
Maggie Zhang, “Tencent Gets a Licence to Sell Mutual Funds to WeChat’s 1 Billion Users in China,” South China Morning Post, 04 January 2018, https://www.scmp.com/business/companies/article/2126876/tencent-granted-licence-sell-mutual-funds.
- 12.
Shu Zhang, “Alibaba-Backed Online Lender MYbank Owes Cost-Savings to Home-Made Tech,” U.S., February 1, 2018, https://www.reuters.com/article/us-china-banking-mybank-idUSKBN1FL3S6.
- 13.
Steven Millward, “Alibaba Launches Online Bank: ‘It’s for the Little Guys, Not the Rich’,” Tech in Asia, June 25, 2015, https://www.techinasia.com/alibaba-launches-online-bank-mybank.
- 14.
Matthew Brennan, “Wechat Red Packets Data Report of 2018 New Year Eve,” China Channel, February 18, 2018, https://chinachannel.co/2018-wechat-red-packets-data-report-new-year-eve/.
- 15.
Alex Gray, “Here’s the Secret to How We Chat Attracts 1 Billion Monthly Users,” World Economic Forum, March 21, 2018, https://www.weforum.org/agenda/2018/03/wechat-now-has-over-1-billion-monthly-users/.
- 16.
Emma Lee, “WeChat Pay Tries to Duplicate Domestic Success Overseas with Killer Recipe: Social Networking,” Technode, March 1, 2018, https://technode.com/2018/03/01/wechat-pay-social-networking/.
- 17.
Madhav Chanchani, “Alibaba to Hike Stake in Paytm’s Marketplace for $177 Million,” Economic Times, March 3, 2017, https://economictimes.indiatimes.com/small-biz/money/alibaba-to-hike-stake-in-paytms-marketplace-for-177-million/articleshow/57428717.cms.
- 18.
“These Figures Show the Incredible Growth of Paytm as Payments Platform,” Business Today, July 9, 2018, https://www.businesstoday.in/current/corporate/paytm-transactions-wallet-firm-upi-payments-bank-50-billion/story/280040.html.
- 19.
“Alipay Expands in-Store Mobile Payments to North American Retailers,” Mobile Payments Today, January 17, 2017, https://www.mobilepaymentstoday.com/news/alipay-expands-in-store-mobile-payments-to-north-american-retailers/.
- 20.
“Website,” accessed January 6, 2019, https://www.ft.com/content/2d0ba0da-cedf-11e7-9dbb-291a884dd8c6.
- 21.
Suprita Anupam, “Is Facebook Really Entering The P2P Payments Space In India?,” June 15, 2018, https://inc42.com/buzz/messenger-is-facebook-really-entering-the-p2p-payments-space-in-india/.
- 22.
Brett King, Bank 4.0: Banking Everywhere, Never at a Bank (Marshall Cavendish International Asia Pte Ltd, 2018), page 180.
- 23.
Jeffrey Dastin, “Amazon Lent $1 Billion to Merchants to Boost Sales on Its Marketplace,” Reuters, June 8, 2017, https://www.reuters.com/article/us-amazon-com-loans-idUSKBN18Z0DY.
- 24.
Ibid.
- 25.
“Everything You Need To Know About What Amazon Is Doing in Financial Services,” CB Insights, 2018, https://www.cbinsights.com/research/report/amazon-across-financial-services-fintech/.
- 26.
Ibid.
- 27.
Kristin Broughton, “Amazon Buying Capital One? Fat Chance, but Fun to ponder Website,” American Banker, February 17, 2017, https://www.americanbanker.com/news/amazon-buying-capital-one-fat-chance-but-fun-to-ponder.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Arslanian, H., Fischer, F. (2019). The Emergence of Techfin. In: The Future of Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14533-0_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-14533-0_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-14532-3
Online ISBN: 978-3-030-14533-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)