Fintech has peaked and will no longer be disruptive as traditional financial services firms adopt new technologies, according to a report by Morgan Stanley. The report, which was released on Tuesday, said that the number of people who use digital currencies such as bitcoin is expected to grow from about 1 million in 2015 to more than 10 million this year. The report also predicted that venture capital funds would eventually shrink, meaning start-ups could struggle to be profitable in a highly-regulated industry. In conclusion, It recommended that fintech firms begin to work with incumbents rather than trying to disrupt them.
Fintech has peaked and will no longer be disruptive as traditional financial services firms adopt new technologies, according to a report by Morgan Stanley. Researchers concluded that fintech firms would ultimately do more to strengthen than undermine incumbents. The report also predicted that venture capital funds would eventually shrink, meaning start-ups could struggle to be profitable in a highly-regulated industry. In conclusion, It recommended that fintech firms begin to work with incumbents rather than trying to disrupt them.