It is currently a fact It is already taken for granted that banks and fintechs coexist within the same financial ecosystem, which is far from the original approach where it was established that Fintechs would be just add-ons that banks would buy and manage as they pleased. not as it was initially proposed where fintechs were only players that banks bought and managed as they pleased. Given this panorama, in which competition is direct, the question that now arises is: who will lead the sector in the future? financial? Now that it is clear that they are here to compete with each other, the big question is who will lead this financial sector.
On the one hand, traditional banking still has the majority of the market share, in terms of volume of assets under management and leading wealth banking, private banking and institutional banking, with no competitor in sight.
On the other hand, fintech companies have focused on innovation and customer service by optimizing not transactionality and day-to-day operations, but also in terms of accessibility and security of movements. Now what will happen with the products that are more complex.
One of the experts who best knows this topic is Daniel Suero Alonso, young entrepreneur, CEO and founder of several financial companies, who has decades of experience in matters ranging from investment banking, as well as finance strategies through the use of technology. In addition, Suero Alonso, was one of the youngest people in Europe to obtain the title of European EFA financial advisor, while finishing his Executive Business studies at Harvard.
“In the near future, fintechs will begin to enter wealth banking and even private banking, with specific products for this type of client. Saving clients, with great financial capacities that seek to increase their yields due to the increase in interest rates of the European central banks” comments Daniel Suero. This will make the Fintechs that now enter wealth banking and private banking, as their next target market, and position themselves with a more efficient product than banking, with lower commissions and better technology. Since Fintechs by adding their technological efficiency can offer better conditions by reducing their operating costs and this has an impact on having more efficient products for wealth clients.
With this, fintechs will captivate all the target clients of wealth banking and private banking.
What we still don’t know is which of these fintechs that are leading the market today will be the ones that manage to thrive in this new competition. Currently, leaders such as NuBank, N26, Revolut, will be able to enter such a “financial” wealth and private banking or will they continue to be so focused on their “tech” part. What is certain is that new, more specialized participants or those with a banking context will surprise the financial sector. We will see new fintechs in wealth banking or private banking, more specialized and with a more banking background, that will come to revolutionize wealth and private banking in the coming years or will be the fintechs that lead the markets today.
