The later portion of the last decade was not a good time for banks. Some people blame greed others blame bad business and just about everyone blames horrible high interest mortgage tactics for the crumbling of some of the major banks in the United States. Some argue that we aren’t even totally out of that financial crisis yet (despite their being some kind of tech bubble).
But now, as things are starting to stabilize there’s another threat to our biggest financial institutions like Wells Fargo, Citibank and Bank of America. There aren’t a lot of big banks left but CB Insights has done some amazing research into financial tech, or “fintech” startups that are coming after the banking industry bit by bit and piece by piece.
Wells Fargo, Citibank and Bank Of America went to great lengths to become the largest banks in the country. They started as relatively small banks and acquired and acquired and acquired some more. They bought companies from every facet of the banking world to become these financial powerhouses that were at one time teetering on the brink of disaster. Now though, big banks are being attacked from every which way with startups that specialize in just one portion of their business. When you put them all together though it’s like a school of little sharks coming after one gigantic sea creature. Enough of these little sharks could cause a major problem.
In the world of Fintech startups you’ll find new payment processing, new small business loan companies, payroll and business services, micro investing firms like Acorn, and even cryptocurrency firms like these selected for Barclay’s accelerator.
Barclay’s may be on to something, choosing to spur innovation with the help of Techstars, rather than lying in wait for the next group of good fintech startups to strike.
Take a look at this amazing infographic that puts this threat into perspective, and for a more indepth look, login or sign up for CB Insights here.