Chris Skinner's blog

Shaping the future of finance

Time for a global FinTech platform?

Chris Skinner Author Avatar
by

I find it interesting when I read perspectives on FinTech, money and banking. Going digital, getting rid of branches, becoming cashless seem to be the main themes, and yet this ignores that every part of the world is different. It’s hard to go digital if the country has little infrastructure; it doesn’t make sense to get rid of branches if people like them and the country is under-served financially; and it doesn’t make sense to go cashless, if the culture is a cash-based culture.

There are no homogenies here. Everywhere is different.

For example, digital finance is rising fast in all economies but fastest in those historically suffering financial exclusion. The annual Findex data set from the World Bank shows over 500 million more adults have a financial account in 2017 compared with 2014. India was a star performer in 2017 where 80% of the country’s population now has a financial institution account, jumping from 53% in 2014. Sub-Saharan Africa also continues to make remarkable progress, with ten countries reaching at least 50% access and four reaching beyond 65%.

Colombia has 256 bank branches per 100,000 people on average, compared to 32 per 100,000 in the USA and only 1 bank branch per 200,000 in the Ukraine.

Whatever you read, you probably are aware that China, India and Asia is moving to cashlessness far faster than America and Europe.

So, there is no homogeneity.

Nevertheless, I find it interesting that we are now dealing with global finance on global platforms like Apple and Alibaba. Sure, these platforms may have bias towards consumers in the East and West, but their rise to global status is notable. Amazon is one of the two dominant online retailers in India; and India, Brazil and Indonesia are the largest markets for Facebook, along with the USA of course.

The reason I write this is that there are two big forces battling away behind the scenes of FinTech: globalisation and localisation.

By way of example, I was asked the other day where I see FinTech start-ups like Bunq, N26 and Monzo going next. My answer was that they must first prove themselves in Europe. It is likely that they may then look to American ambitions, but America is tough when you have to deal with 50 state regulators with 50 different agendas. It may be easy to look towards Asia, but China and India are already well served by Alipay, WeChat Pay, PayTM, Amazon Pay and Google Pay.

My recommendation is that there’s still no dominant European FinTech financial firm, and so Monzo, Revolut, N26 and Bunq should focus there first, even though Monzo is already working on a US launch as are N26.

Long-term, bearing in mind that all of these firms will need to deal with localisation requirements, I do believe there will be global FinTech and financial platforms. The announcement of Apple Card and work of the Big Tech giants are driving towards this, as are the works of the FinTech unicorns and the big banks (don’t forget them!).

The main issue in achieving such ambitions is language, culture, engagement and experience. Watch this space.

 

Chris Skinner Author Avatar

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

Intelligent Money: Our Future Is Where We Do Not Think About Money, As Our Money Thinks For Us

What is the future?

Learn more

Learn more about Chris

About Chris Skinner

The Past, Present And Future Of Banking, Finance And Technology

Fintech expert Chris Skinner: countries need digital transformation to remain competitive

Join me on Linkedin

Follow Me on X!

Hire Chris Skinner for dinners, workshops and more

Learn directly from from one of the most influential people in technology, gain insights from the world's most innovative companies, and build a global network.

Chris’s latest book

Order now

Chris Skinner’s ‘Intelligent Money’ Book Launch Event

Top 50 Global Thought Leaders and Influencers on Finance 2024

Global Awards

Lifetime Achievement Award

Global 100 - 2024 Winner

Chris Skinner - Financial Markets Advisor of the Year - The Finanser - UK 2023

Best Financial Markets Advisor of the Year 2023

30 Best Regtech Blogs and Websites 2023

Kids creating the future bank | TEDxAthens

Captain Cake and the Candy Crew

Captain Cake Winner of a Golden Mom’s Choice Award

TWO-TIME WINNER OF A MOM’S CHOICE GOLD AWARD!

Alex at the Financial Services

Gaping Void's Hugh MacLeod worked with the Finanser