Currently, it is a fact that banks and fintech coexist within the same financial ecosystem. This situation differs significantly from the original vision, where it was thought that fintech would simply be complements that banks would acquire and manage. In this new scenario, where the competition is direct, a question arises: Who will dominate the financial sector in the future?
On the one hand, traditional banking still holds the majority of the market in terms of volume of assets under management, leading wealth management, private, and institutional banking without any competitors in sight.
On the other hand, fintech companies have focused their efforts on innovation and improving customer experience, optimizing daily transactions and operations. They have also improved accessibility and transaction security. However, the question remains: Will they manage to venture into more complex products?
I have closely observed this evolution. With decades of experience in areas ranging from investment banking to financial strategies based on technology, I was one of the youngest in Europe to obtain the European Financial Advisor (EFA) certification while completing my Executive Business studies at Harvard.
In the near future, fintech will begin to enter wealth management and even private banking, offering specific products for these types of clients. Clients with great financial capacities who seek to increase their returns due to the rise in interest rates by European central banks. This will allow fintech to position themselves in wealth management and private banking as their next market objective, with more efficient products, lower fees, and better technology. Thanks to their technological efficiency, fintech can reduce operational costs and offer better conditions, resulting in more attractive products for wealth management clients.
With this approach, fintech could attract all target clients of wealth management and private banking.
The lingering question is: Which of the current fintech leaders will thrive in this new competition? Will the current leaders like NuBank, N26, and Revolut be able to enter traditional wealth management and private banking? Or will new fintech specialized in these segments come to revolutionize the market in the coming years? These and other questions will continue to arise as the financial landscape evolves along with technology.
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