The Explosion of The Fintech: Why Is Begins to Doubt to Existing Banks in Ten Years

71% of the Millennials (those born between 1981 and 2000) prefer to go to the dentist than to the Bank. It seems that by unbearable it is to undergo a dental cleaning, more is it hear the offer of products from your financial institution. This is one of the findings of a survey of 10,000 young Americans between 16 and 34 years. Of these, 33% said that does not require a bank to nothing. And it may be true.

Many financial services before linked exclusively to large organizations today provide them FINTECH, startups based on technological solutions. There can be no doubt, we have to keep going to the dental clinic, but we get rid of go to the Bank?

Fintech figures or the Wolf’s ears

“There are competitors that make things different and better way that traditional banking. The fintech are able to better service than banks offer operations simpler, more transparent, quicker and cheaper for the customer.” Other millennial disenchanted with banks? Lol Which was so recently the XXIII meeting financial ABC – Deloitte was Carlos Torres, Managing Director of BBVA, one of the entities having more clear that we are before a new digital business ecosystem.

Word of the banker. It gets serious. They are beginning to see the Wolf ears? The possibilities of the technology are limitless and the strength of the fintech is evident. We’re talking about startups that offer very attractive alternatives in areas like mobile payments or transfers, online brokers that do not charge commissions or automated robots that allow you to manage the investments at one much lower cost than the traditional industry of asset management.

All of these companies with a technological base specialize vertically in very specific products or certain segments of the value chain of the financial business. There are around 15,000 at a global level and with giants like Google, Facebook, Amazon or Paypal – the grandmother of the fintech – threaten the banking industry. Investors are betting strongly by these companies. More than 22,000 million dollars of financing in 2015, 75% more than in 2014, picks up the latest trends report entitled La revolution Fintech launched by Finnovating. There are some 15,000 fintech worldwide. By 2015 they received more than 22,000 million in financing

And although the epicenter of this revolution is located in the Anglo-Saxon world – of the fintech 100 of larger and more innovative, 40 are Americans and 18 British-, Spain increasingly more increases its weight on the European continent.

In just one year, the number of fintech operating in our country has grown by 50% and has now reached the 120 operators. He is estimated that 2016 ends with some 200 startups on the Spanish map. In addition, according to Startupxplore, investment in this sector increased by 57% over the past year, exceeding the 213 million of funding.

Another sign of the progress of this sector in Spain is the recent creation of the Spanish Association of Fintech and Insurtech, which adds to the Spanish Association of technology financial who was born in 2015.

The Spanish map of the fintech consists of some 120 startups and the number keeps on growing

A boom applauded and celebrated for the users. The fintech are made daily most popular among consumers of all the world and gestures as revenues and expenses, transfer or a loan without stepping on a Bank are increasingly more common. Two data:

  • 70% of Spaniards already used products or services fintech, which is more than the average consumer in the world (63%).
  • While 51 percent of Spaniards would recommend to your friends and family your provider fintech, only 30% would recommend to your bank.

Fintech in Spain success stories

On December 28 the startup Kantox broadcasting a note in which he announced the emblematic Torre Mapfre in Barcelona was to bear his name. It was an innocent, but the information spread like wildfire on social networks and was published by several media. It was proof that the name of the catalan origin company specialized in foreign exchange for companies he has carved a niche within the financial industry after accelerating its growth in the last year. With about 2,000 clients, Kantox is already on track to 3,000 $ transaccionados million and is a success story fintech with Spanish label that challenges to the traditional model of banking. How have they done it?

As it says Philippe Gélis, Kantox cofundandor, in a conversation with Engadget, its objective and business model was clear from the beginning: that no one else would pay exorbitant and opaque commissions on operations in foreign currency. “Bill Gates said «a PC at every table in every home», because we want to have every financial access to Kantox to be able operate in currency of a fair and transparent manner”, underlines.

Kantox aims to ensure fair and transparent, currency exchange without exorbitant commissions

“We saw that there was a problem in the financial segment, banks too charged to clients, and entrepreneurs are born to solve those problems,” adds the also Kantox, Antonio Rami promoter, in another video interview in which reviewed the activity of the fintech. The result: When a client requests a change of currency, the platform, through peer to peer, seeking matches with companies wishing to perform the reverse operation, or in the wholesale foreign exchange market, guaranteeing customers the best price and maximum transparency. It’s a mechanism for crossing operations between various markets with the gets to cushion the risks of change implicit in the operations to run with different currencies, a very important money-saving for many companies that work with these badges and a return assured to Kantox due to the large volume of transactions.

Next to Kantox, there are other fintech success stories notable in Spain:

Spotcap allows an SME or an autonomous request financing by up to 100,000 euros and get a response in a few hours. No papers, no guarantees, no personal guarantees. This platform, born in Berlin, but with Spain as a prime market, closed a few weeks ago a round of funding of € 31.5 million and granted 5 million in lines of credit in their first year of life.

The biggest injection of capital so far has received Ebury, specialized in international payments and foreign exchange and recently awarded as the best European Fintech specializing in payments. Last year he managed to raise € 77 million in a round led by Vitruvian Partners Fund. Near the capital got when he took his first steps, Ebury is one of the few European startup that has succeeded in attracting investments by more than $ 100 million.

Zank, is one of the heavyweights of crowdlending peer in Spain, i.e. the field of P2P lending. An area, which also highlights and was one of the pioneers Comunitae, who in addition funds to SMEs. In both cases, it’s fintech which are born of a need to the lack of liquidity of banks, barriers to get financing and the drop in the return on deposits. Zank contacted solvent persons who seek a loan and will pay one interest with others who have money to invest and want to get a higher return, “offers a solution to both customer profiles: financing at a fair cost and profitability above deposits”, explains Gembeta Oriol Fluzin, CEO of startup.

A look at the Spanish fintech map

Indexes Capital, within the scope of the theft advisors or automated investment advisers; Setpay, within the market of the mobile payments (At Engadget you can read more about the unique POS in Spanish 100% mobile); or Bit2me, in the field of the bitcoin virtual currency, are some of Spain’s most influential companies. All included in map fintech interactive elaborated by the Manager of Mooverang personal economy. Several data are drawn from it:

  • 48% of the fintech Spanish aims to offer services to the final consumer (B2C), while 38% is engaged in business between companies (B2B). Only 14% of them covers services for both markets.
  • There are companies specializing in payments and loans that concentrated most activity with 23% and 21% respectively, followed by those dedicated to crowdfunding (18%) and crowdlending (17%).
  • Madrid is home to 57% of enterprises, followed by Valencia, and Barcelona, with 17%, with 4%.

FINTECH: a new model is possible

4 November Google announced the winners of the awards Start Ups innovation mobile 2015 and Fintonic, free app that helps you to check your cards and accounts and the money that comes in and out of them, was the winner in the category of finance.

Xataka Android you can read how it works and, also, how “makes box” this fintech, perhaps one of the most known at the level of domestic economy. Almost inevitable is that hum of “Fintonic with or without Fintonic. With Fintonic or without Fintonic”, which is repeated in the little song of your ad on TV. A cheerful and relaxed spot. Even fun. Adjectives that, in principle, no one would associate a financial service and savings.

The fintech are a breath of fresh air, the B side of finance in suit and tie, the example that a new model is possible. Add to this ease of use, transparency, speed and good user experience. Go for everything in a mobile phone, a tablet or computer. The combined like. It connects with the digital natives, my generation millennial generation. If we make the purchase online, we listen to music and we see movies online, we reserve our online vacation… why not were going to manage our online finance?, how to say no to the convenience of carrying Bank in our pocket, available 24 hours 365 days a year?

The fintech connecting with the millennial generation, but also with a large number of people over the age of 35 disenchanted with traditional banking

But Furthermore, the fintech are more and more public among those who exceed the 35 years and share their disenchantment with traditional banking. Crisis, bailouts, “black” cards, preferred, evictions, costs and very high commissions, complex processes, opacity and lack of transparency, small print. All these issues involving many entities do that go the balance leaning fintech side and that increasingly more people are open to innovation and overcome their misgivings before technology.

Challenges and obstacles for the fintech

My parents. I think of them to speak of misgivings and pose one of the major stumbling blocks to make use of the fintech mass. Do they achieve these startups win is my parents? They are a tough nut to crack. They represent an entire sector of customers still valued the physical contact and that after your bank book on paper look askance technological applications saying “don’t trust, will it be a scam?”

  • Trust: technological innovations need time to incorporate completely into our routine, even more so if they have to do with our money. Young people assume it as something more natural, but the fintech should get reputation and gain the confidence of all users if you want to be the choice of preference rather than a traditional bank.
  • Security: together with confidence, appears the safety factor. Any measure seems to be insufficient in ensuring that our finances are in good hands. The fintech should implement high levels of safety and be able to explain to users how to eliminate the risks inherent in sector tecnofinanciero.
  • Value of brand and differential: the fintech are in the process of building your brand image. They have become a familiar and recognisable solution for users, individuals and companies synonymous with trust, security and guarantees. But in addition, they must work their differentiation in the offer, not only for banks but comparatively to the rest of fintech.

Generate trust and confidence in users, increase your brand value and differential, get an own regulation and “coopetir” with the banks are some of the challenges facing the fintech

  • Regulation: It is no coincidence that both Kantox, as Ebury, similar to other many fintech created by Spaniards or operating in Spain have their headquarters in London. This is due in large part to the role of the City as a global financial center, but also the British capital has managed to create a conducive ecosystem for the development of these firms. Our neighbors to the North have a regulation according to the needs of the sector for which we lack. No intermediary financial firms of credit (including the different models of business fintech is) are regulated by the Financial Conduct Authority (FCA) and those entities that do require a banking license to operate are regulated by the Prudential Regulation Authority (PRA), dependent on the Bank of England authority.

On the blog of Kantox they delve into this regulatory framework and speak of “proactive stance” to refer, for example, a initiatives such as Regulatory Sandbox, introduced by the FCA to “promote innovation for the benefit of consumers, promote competition through disruptive innovation”. “The companies that are selected to participate in this project shall have a regulatory framework where to test new products, services, and business models in a safe way, without having to comply with any regulation that under normal circumstances would require the activity in question”, described.

In Spain We are very behind in regulatory matters, but from the associations fintech, in collaboration with the Government, because it is working on the development of a white paper that serve as a basis to achieve a future regulation proper. The objective is to ensure that Spain is a country more agile and with a more friendly for this kind of business environment. Only in this way, “ensure the safety of the final consumer, it will bring stability to the system and Spain can put at the head of the fintech ecosystem”, they point.

  • Banks: is traditional banking an obstacle? Are they the enemy or an ally? The fintech keep its total independence or fintech and doomed banks are to be understood and supported? There is a diversity of opinions on the matter. But noting the latest moves seem that via triumph of the “opetition”, a neologism that arises by fusing the words competition and cooperation.

Opetition, pacts “with the devil” and digital banking strategy

Despite the shadows of the traditional banking, Nobody misses its enormous size and its financial muscle. Nor their large portfolios of clients and the huge advantage that the lot of data that it has on them. Something that could be very helpful for the growth and consolidation of emerging companies in the sector tecnofinanciero.

Following with Kantox, This fintech opened recently the doors to work with financial institutions, what some called “Pact with the devil”. The company acknowledged having launched contacts with banks to provide its technology for the exchange of foreign currency in Exchange for reaching your customers. “It is not offer technology brand to the entity so that it manage it with their rates and style. “But a derivation of banking customers, thanks to which income generating these will be shared by both parties”, announced from the company.

Banks, who initially despised the fintech force, are now aware of their enormous potential, have been alert and are predisposed to this type of collaborations. Instead of getting into fights, they prefer to see this stage of competition as an opportunity to innovate, transform, enhance its digital aspect and the new demands of customers.

To do this, “coopiten” and establish “marriages of convenience” with fintech. But an important fact: Although, by now, all of these agreements they are voluntary, some will be required by law. Last January came into force the new European directive of services payment (PSD2, for its acronym in English), a rule, which the different countries have a maximum of two years to implement, and which forces to community banks to Open your customer accounts (always with the permission of these) for payment to third-party service providers enabling them to offer their services through the infrastructure of the banks. In a recent study by Finextra compared this phenomenon with the moment in which the telecommunications firms to share their infrastructure to allow the entry of new competitors.

Traditional banks face the fintech agreeing with them “marriages of convenience”, making strategic investments and developing own platforms and applications

Banks are preparing, advance in the process of digitalization and develop own payment applications and mobile platforms, implemented programs for the incubation of startups and carry out strategic investments. We have different examples in Spain on how banks move tab to the fintech and develop its own technological strategy:

  • BBVA He announced in March the acquisition of Holvi, an online business banking service, based in Helsinki. By 2015, the Group acquired 29.5% of Atom, the first exclusively mobile Bank of United Kingdom, and materialized the purchase of Spring Studio, a design firm from USA, a leader in user experience. A year earlier, bought developer solutions, a startup Spanish services of big data and cloud computing, and Simple, a technology firm that has changed the way in which people manage their money in U.S. BBVA is also an investor in the venture capital firm Propel, which manages the group holdings in startups that are changing the financial services through technology. These operations are part of the plan of BBVA of transforming a traditional bank in the leading provider of information and financial services the new it was digital. “the banks of the future will be software companies which will convert data into useful knowledge to offer each client the best solutions,” has said himself the President of the entity, Francisco González.
  • The Banco Santander, has become a unit of funding and investment with InnoVentures Fund that has invested in companies such as Ripple, a startup that develops blockchain technology – for example used in the virtual currency – and that will allow in the future to make international transfers in real time.
  • ING It has launched Twyp, a free app that allows you to send and receive money quickly and immediately to anyone who you have on the agenda of your Smartphone, be the Bank you are. Have you already used this kind of whatsapp to pay half? In Engadget Mobile they tell you how it works.
  • CaixaBank It took a leap of banking online to mobile banking with the launch earlier this year a digital Bank under the name of Imaginbank. Although open to customers of any age, this platform is directed above all to attract a young audience – the renowned millennial generation – it only works in Mobile and tablets.

The proposal of Caixabank is close to the Number26, the Austrian Bank based in Germany, 100% native mobile, which at the end of 2015 announced his landing in Spain to the cry of zero commissions, zero conditions. How a bank’s 90 employees it did how 100,000 customers? It is the question that launched blog Salmon to analyze the meteoric advancement of this bank which is more difficult to the business of banking in our country.

“The best office you can have is the smart mobile phone.” Proclaimed it a few days ago the head of business development and operations of this Bank, Nicolas Kopp, within the framework of the Revolution Banking 2016 event, organized by iiR Spain in Madrid. It was the first time that a representative of Number26, visited Spain and expectant public developed her presentation dressed in jeans, polo blue, grey sweatshirt’s zipper and glasses of pasta. A look that contrasted with the homogeneous grey aesthetics of attendees and which fit perfectly with who tries to break with the established and prove the thesis that a new model of banking is possible.

And as a reply to this earthquake with its epicenter in the traditional banking model, Mondo Bank] ( Here’s a new bank that already operates in United Kingdom and transformed the Smartphone is much more than a mobile office. Geolocate our purchases, receive offers from stores where you buy, see a breakdown of our expenses, receive alerts if you increase the amount of a receipt domiciled, lending money to friends (like you do with Twyp), get advances… are some of the features of Mondo and that add to the usual banking efforts. And, of course, all without having to queue, without filling roles, without limitation of time, without employees…

Future: we will have or not have banks in ten years?

Seen, the questions arise: what will happen to the traditional banks?, are out of business?, how is the new Bank Office resulting from the digital challenge? Moreover, the office is there?

According to a report by PwC, the traditional financial institutions fear that these new companies can eat up to 25% of your current business during the next five years. The own fintech considered that snack could be still higher, up to 33%.

Traditional financial institutions fear that the fintech can eat up to 25% of your current business

Respondents report ensure that retail – banking or consumer-payment business and services related to the management of assets and wealth are it will transform in a more radical way. The emergence of new online platforms that allow direct lending between companies and consumers without Bank intermediation or the proliferation of new payment systems and mobile applications are some clear examples.

It seems increasingly clear that limited operations on the basis of an established business hours there is no point in this new era. Also phrases such as “for this operation consult your office” we already sound a thing of the past. Brett King, global economist and creator of the application of mobile banking Moven, it says that “the cashier (person) is today what the Telegraph operator was in the past” and predicts that this year we will assist to a descent important in the number of branches that kept operating banks, something that will still be notable in coming years.

Santander announced a few weeks ago the closure of up to 450 offices and from BBVA have hinted that they can dispense with 2,800 long-term

The figures give the reason. According to the data of the Bank of Spain, in our country have gone from 46.221 branches in 2008 to little more than 14,000 in 2015. Santander announced a few weeks ago the closure of up to 450 offices and from BBVA have hinted that they can dispense with 2,800 in the long run. It is logical to see the significant decrease of activity in their offices in the last four years. 67 million of transactions performed nearly 4,000 branches in Spain in 2011, the network happened to run 40 million, down 41%.

Since these entities they argue that banks that so far we know is not going to disappear, but they will be “different”. Differences in background and form. Business model of banking in the digital age will gradually drawing in a more open and competitive scenario in which, as pointed out when talking about “opetition”, the way of the convergence It seems the best option for all stakeholders.

And what will happen to the offices? As explained in the Revolution Banking 2016 days, in the coming years we will see substantial changes in the banking infrastructure: less branches but more powerful and advice and add value, the network segmentation to understand and better serve the customer, offices that are transformed into shops and adopt industry practices retail, offices/flagships emblematic that enhance the brand, customers who make things for themselves in a new “era of self-service”,…

These offices, moreover, only will be meaningful if they are integrated within an omnicanal strategy, i.e. an approach where customers can enjoy the same level of service across all channels, whether mobile, tablet, desktop or branch and are able to pass freely from one channel to another.

Banking is essential, but banks increasingly are less

Is a question of evolution, of adapt or die, or how he taught us the fintech phenomenon and says the President of BBVA, Francisco González, “new generations of customers demand us other services and other forms of access to them. Banking is essential, but banks increasingly are less”


Notes from Rational Support

Notes from Rational Support


Notes from Rational Support

Notes from Rational Support


Notes from Rational Support

Notes from Rational Support


Unit 19 — The Revolution in Exploration and Discovery …

Unit 19 -- The Revolution in Exploration and Discovery ...


Unit 19 — The Revolution in Exploration and Discovery …

Unit 19 -- The Revolution in Exploration and Discovery ...


Unit 19 — The Revolution in Exploration and Discovery …

Unit 19 -- The Revolution in Exploration and Discovery ...