Fintech startups are trying to disrupt banking. Turns out, their efforts aren’t really what have major banks worried.
Legacy financial institutions are more concerned with the threat of tech giants like Amazon and Facebook than about startups trying to revolutionize investing or payments, according to a new report from the World Economic Forum.
“Fintechs have changed how financial services are structured, provisioned and consumed, but have not successfully established themselves as dominant players,” the report said.
In other words, banks think that startups like Betterment and Wealthfront have spurred some innovation, but don’t have the resources or scale to truly threaten their businesses. Read more…