It is clear nowadays that one of the most significant market players are Fintech startups. Let’s have a deeper look at what forces are driving fintech and what kind of impact young innovators have.

Fintech startup activity is well-funded, pervasive and solution-oriented. Its aim is to bring innovative business models. The innovations made by Fintech are in every part of the incumbent’s existing value chain. The young entrepreneurs can rely on the low interest rate credits granted to them by VCs & PEs. All their initiatives are driven by current customers’ expectations. The global megatrends also foster the new business models adaptation- by 2020 millennials will form 50% of the global workforce according to Anticipating problems, finding solutions Global Annual Review, PwC, 2014- and they are social-media savvy, more and more people live in the urban areas.

The new companies can benefit from open source frameworks, scaled cloud computing and developers on-demand. Business taking advantage of latest customer behaviors and expectations quickly achieve scale and adoption. They give the customers individual accessibility, customized on-demand services and customer experience.

The trends reshaping the asset and wealth management industry are worth mentioning. There are algorithm driven investment like Wealthfront, user driven investment strategies- Motif Investing or bridging self-service and assisted services f. ex. Personal Capital.

The next trend which is winning at the relevance is BioCatch. This program collects bio-behavioral and psychological parameters to generate the unique user profile. It concentrates on who the user is.

The next curious fact is that the robo advisos meet machine learning. They are striking notable partnership and having exponential increase in assets under management, from $4B by 2014 to $15B by 2015.

Now a few words about the disruptor mindset. They are focused issues where customer needs and expectations are not met by the traditional services. Fintechs concentrate on a single product solution. Whereas the incumbents focus on the value chain and functional organization.