The Signs That Fintech Has Reached Adulthood In 2018

The newness of digital-age fintech seems to have worn off. There is less surprise at the concept of online-only banks, less indignation at robots giving investment advice, less confusion and scepticism over digital ledgers and cryptocurrencies. It's like we all jumped into a chilly pool, went through a period of shock, and have now gotten used to the temperature of the water. But this is far from suggesting that fintech companies have become less disruptive or that their potential has played itself out. Just the opposite: fintech's most exciting epoch is beginning right now. My colleagues at the Khube and I recently attended the Paris Fintech Forum (PFF) where many of our fintech observations—and a few new ones—appeared in other people's mouths. Our ultimate conclusion is that fintech has reached adulthood, and is about to change our lives in a deeper, more profound way. Read on for the reasons why we think so.

1. David and Goliath have become friends.

   Fintechs, once seen as agile but heavyweight threats to big incumbents, are now largely considered more to be assets in partnership—the shift is noticeable in just the two short years since the first PFF in 2016. There are counterexamples to this trend, of course, such as Lemonade in the insurance sector, or some neo-banks with successful operating models, but these are not the norm. More indicative are new combinations, like BCPE's recent acquisition of online bank Fidor, or the partnership between BNP and robo-advisor Birdee. It seems that the industry knowledge, customer bases, and confidence-inspiring histories of established organisations complement the digital strength and flexibility of fintechs, and vice versa. Indeed, banks and insurance companies see fintech products/services as immensely valuable new parts in the larger machine of their work.

2. Tough technologies have become household concepts.

   Once mystical and dense, "cryptocurrency" doesn't even warrant defining at conference talks anymore. People know about it. This, surely, is a sign of the technology's maturation. We fully expect 2018 to be a breakout year for cryptocurrencies, and perhaps more-so for the distributed ledgers (blockchains) that power them.

3. Fintech has taken on a vision of its own.

   People often confuse fintech with software. Ultimately, however, "software" denotes programmes that carry out tasks on computersand this does not define fintech. Rather, fintech represents a mind-set as much as it represents...