THE SIRCLE

Over the last five year, there has been an explosion of tech start-ups rapidly innovating in the finance sector. A number of new players are slicing off a service normally run by a bank and doing it much better – from SME lending to card payment, from wealth management to international payments. Almost every financial service that is offered by a bank is now also offered - or soon will be - by a financial technology (FinTech) company.

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For the consumer, this means that for the first time ever, there is a real alternative to the banks. Along with greater choice comes better services that are faster, better value and fairer. 

 

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Fintech is on the cusp of becoming a mainstream consumer trend. Although its impact on the industry is yet to be truly felt, expectations are high. But finance is one of the hardest sectors to disrupt. One of the main reasons for this is trust. The relationship we have with our banks is unlike one we have with any other service provider. Usually long-term, often for life, we remain faithful no matter what. 

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Of course, at the same time as the ills of regulation are expanding, innovations are working to expand financing choice in the marketplace, including, for example, crowd funding, peer-to-peer lending, and greater access to lender and investors via other online means. As the private sector and technology push in one direction and government overreach pushes in the opposite, it pays to keep in mind how all areas of financing are critical to small businesses.