FinTech

FinTech vs The Status Quo

There is an old wisdom story about a truck that gets stuck under a bridge. The details vary, but the gist is that all conventional [old school] thinking fails to solve the problem, but out-of-the-box thinking [a young girl/boy] gets the job done.

If you’ve not heard this overused (and yes, [pun intended] ‘tired’) analogy, the premise is that:

  1. a truck get stuck under a bridge/overpass;
  2. all the best [old] engineers around cannot solve the problem, and their solutions include:
    • force the truck through, likely damaging both truck and bridge;
    • drag truck back out so it won’t reach destination; and
    • raise the entire bridge.
  3. a child [young/fresh] comes along and says to take air out of the tires, thereby lowering the truck just enough to pass under the bridge.

Call it common sense, call it obvious, but the solution was only clear to someone with a completely fresh pair of eyes and no preconceived notions of the ‘right’ way to do something.

This is where we find ourselves in the world of FinTech. Defined as; “the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.”, FinTech as a buzzword has been out for over 25 years, but what has it achieved?

If you see ‘invisible payments‘ and seamless feature-rich ancillary services (loyalty points / rewards for example) as the ultimate goals of FinTech, where are we in 2019?

We have the technology [most of it anyway], we have a growing interest, but what we still DON’T have is the support of those with a vested interest in the status quo.

Hardly surprising, right?

From banks, to payment card brands, to payment terminal manufacturers, and even regulators, it in their best interests to keep things the same. But the brave new world that IS coming has no place for those unprepared / unwilling to change or adapt.

There’s no denying that management and transfer of value (a.k.a. money) in 2019 is both massively complex and monolithic, but that’s really no excuse, not with the billions being invested in innovation. And while I do not want to trivialise the truly enormous effort required to effect the necessary changes, I resent the active obstruction.

On BOTH sides.

Instead of working together, both sides are doing their damnedest to grab the biggest piece of the pie. Like there’s not billions of £/$/€ to go around. Capitalism and sheer greed are ensuring that the best ideas are not being made available to the end consumer. And it’s OUR money they’re playing with!

The prevalence of the buzzphrase ‘disruptive’ is the perfect indicator that FinTech has little interest in bringing the old school along for the ride, so is it any wonder that the old school wants to ‘defend’ itself? All the old-school have to do is lobby the regulators and FinTechs run out of money before their ideas make the light of day.

It’s us that lose.

I want access to MY money wherever, whenever, and HOW ever I want. I also want as many features as possible around the use of my money as I deem relevant. From loyalty programs, to instant coupons, to money management, to whatever comes next, the old-school has proven its inability to innovate [adequately], which is WHY we have FinTech in the first place.

Clearly I have no solutions in this rather useless blog, but if one person comes over to the light-side (sustaining innovation), I’ll consider this worthwhile.

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