To put things in perspective, there were 274+ #fintech unicorns in Sept 2022, up from 25 in 2017. 🔎 11X growth in 5 yrs, even after tech multiple corrections. Three key drivers:
🚀 New business models of #platform and ecosystems help new (and existing) players jump across industries (e.g. WeBank from WeChat)
🎯 Customers now expect MUCH high personalization, zero friction, etc. (e.g. Apple / Google Pay)
⚡️ Tech has eliminated size as an advantage (from traditional banks) in providing excellent services, winning customer loyalty, aggregating and analyzing data (e.g. Robinhood )
McKinsey also believes that the future of banking includes a $20 trillion breakup opportunity.
💬 Skeptics are right about today—and wrong about tomorrow.
"To compete, most banks will have to embrace cross-industrial platforms...
new platforms dismantle the barriers between traditional industries, reshaping customer behavior and turning formerly linear value chains into ecosystems that fulfill customer needs in new ways.
The process has already reached critical mass in industries such as healthcare, media, music, and retail, where diverse players are connected by platforms created by global leading companies that have been amply rewarded by the global capital markets.
Source: McKinsey
