The future of FinTech will include a continuous assault on the large incumbent players whose market shares are eroding.
Large financial institutions are challenged, because they cannot innovate from within their current business models. They are happy improving themselves gradually, but are not able to make radical changes to their operations.
The blockchain is the biggest opportunity for change and innovation since the Internet came along, over 20 years ago. What remains unknown is the extent to which banks will see the blockchain as a threat or an occasion. Will they repeat the same mistakes they made when they under-estimated the impact of the Web on their business?
Innovation is at risk of being suffocated by rigid regulations that can’t evolve with the increasing pace of technological innovations, notably the advent of the blockchain. I challenge regulators to take a turn at innovation by evolving and updating existing regulations accordingly. Don’t succumb to doing the easy thing and apply old laws and practices to fundamentally new technologies that want to challenge the status quo.
By William Mougayar, author of ‘The Business Blockchain: Promise, Practice and Application of the Next Internet Technology’, investor and blockchain thought leader