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SMEs and Start-ups: What lies ahead in the future of Fintech?

Investment by Apple, Google and now Intel into the fintech market strikes fear into many small and startup companies that are currently in or contemplating their entry into this market. But should they worry?

We have seen it already in other industries: with the massive resources available to them, the monoliths can quite easily dominate their sectors, squeezing out the little men from the market, stifling innovation just as it starts to gain traction. Is fintech doomed as well, or can we learn from other industries’ fate to save its disruptive nature?

The larger the organisation the more it costs them to enter a market, which is usually why large corporations rarely explore a new sector before anyone else. Entering a new market as early as possible is clearly the ideal scenario, and often the fastest method for a corporate is simply to buy their way in – so-called “innovation by acquisition”. Just look at what has happened with flash storage. A small number of the truly early innovative companies were bought by the likes of EMC, DELL, and HP.

Big corporations are coming, whether you like it or not, and your success as an entrepreneur will depend on your attitude.

You can become part of a bigger picture and have the level of resources and financial backing that you’ve always wished for, get that exit you promised yourself would come, or go it alone and take on the giants. All are valid options!   

By David Trossell, CEO and CTO at Bridgeworks

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