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Other - DECEMBER 2, 2019

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How fintech is picking apart traditional finance

by Mike Consol

Let’s consider some cold, hard numbers for starters. Some 45 percent of personal loans are now originating through fintechs, a figure that stood at about 5 percent just four years ago. Goldman Sachs estimates the worldwide fintech space to be worth $4.7 trillion, and there are more than 12,000 fintech startups worldwide. China-based Ant Financial, heralded to be the world’s largest fintech company, is worth more than $60 billion and employs over 10,000 people.

What is fueling this trend? In a phrase, widespread consumer dissatisfaction with traditional banks. Again, the numbers tell the tale: U.S. citizens are being charged an average of $130 a year in just checking account fees and those accounts are paying an average interest of 8 basis points. Even worse, bank customers are being charged $34 billion per year in overdraft fees, or an average of $50 per month per customer.

Get the picture?

Those are referred to as “pain points,” yet with 0.1 percent of

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