In your opinion, what is the difference between the European FinTech landscape compared with that of other continents?
Europe consists of 51 independent countries (including five transcontinental states) with a total population of 600-800 million (depending on how we count the transcontinental states). This continent is a very colourful and adiverse patchwork in terms of: national regulation, level of affluence, demographics, extent of digitalisation, availability of capital, sophistication and size of the financial services sector and other aspects. Each of the 51 markets is unique, yet limited in size. This makes European FinTech companies think always and by default in international expansion as part of their strategy. This inherent and necessary focus on cross-border growth from “day one” makes European FinTech startups unique.
How receptive is your country's culture towards changes resulting from FinTech? e.g. in terms of privacy and or change resistance?
Hungary and the UK can both be considered as “my country”. The UK’s situation is well known, so let me please focus on Hungary here. Hungary is surprisingly receptive and open towards FinTech. Banking in Hungary underwent an extremely dynamic and positive process of modernisation between 1990 and 2010. This period produced a banking system in Hungary with process management, IT and products easily beating a significant number of Western European countries in terms of quality and modernity. Based on the results of these 20 years of modernization, Hungarian banks are open and ready to innovate. Just an example of how surprisingly forward this market sometimes is: In 2011, a major bank in Hungary introduced and started to sell a bracelet and a watch which integrate a payment card and work with PayPass technology!
Will there be any banks left in 2020?
Yes. Banks have been around and have been innovating since 2000BC. Banking began in Assyria and Babylonia, and the first products were grain loans to farmers. Innovation in the banking system has been an ongoing phenomenon ever since. Indeed, FinTech poses probably the biggest challenge to the incumbent system in the last 4 000 years. But the “one-stop shop” nature of banks (i.e. savings, loans, transactions and payments in one place) makes them necessary. Total assets of the entire global banking system make up $150 trillion. By 2020, a maximum of 10% of this will belong to new entrants.
Which FinTech company could become the next Uber? Why?
PayPal, because it has figured regulation out in 203 countries, or Apple, if it starts Apple Bank.
What do you think is the most promising technology that will disrupt financial services? Why? A global patent of digital identity based on biometrics and other technologies combined, which is accepted by most states. Technology exists for this, but states are understandably reluctant to switch to digital-identity schemes. However, if they did, that would really lead to tectonic shifts in banking!
Europe consists of 51 independent countries (including five transcontinental states) with a total population of 600-800 million (depending on how we count the transcontinental states). This continent is a very colourful and adiverse patchwork in terms of: national regulation, level of affluence, demographics, extent of digitalisation, availability of capital, sophistication and size of the financial services sector and other aspects. Each of the 51 markets is unique, yet limited in size. This makes European FinTech companies think always and by default in international expansion as part of their strategy. This inherent and necessary focus on cross-border growth from “day one” makes European FinTech startups unique.
How receptive is your country's culture towards changes resulting from FinTech? e.g. in terms of privacy and or change resistance?
Hungary and the UK can both be considered as “my country”. The UK’s situation is well known, so let me please focus on Hungary here. Hungary is surprisingly receptive and open towards FinTech. Banking in Hungary underwent an extremely dynamic and positive process of modernisation between 1990 and 2010. This period produced a banking system in Hungary with process management, IT and products easily beating a significant number of Western European countries in terms of quality and modernity. Based on the results of these 20 years of modernization, Hungarian banks are open and ready to innovate. Just an example of how surprisingly forward this market sometimes is: In 2011, a major bank in Hungary introduced and started to sell a bracelet and a watch which integrate a payment card and work with PayPass technology!
Will there be any banks left in 2020?
Yes. Banks have been around and have been innovating since 2000BC. Banking began in Assyria and Babylonia, and the first products were grain loans to farmers. Innovation in the banking system has been an ongoing phenomenon ever since. Indeed, FinTech poses probably the biggest challenge to the incumbent system in the last 4 000 years. But the “one-stop shop” nature of banks (i.e. savings, loans, transactions and payments in one place) makes them necessary. Total assets of the entire global banking system make up $150 trillion. By 2020, a maximum of 10% of this will belong to new entrants.
Which FinTech company could become the next Uber? Why?
PayPal, because it has figured regulation out in 203 countries, or Apple, if it starts Apple Bank.
What do you think is the most promising technology that will disrupt financial services? Why? A global patent of digital identity based on biometrics and other technologies combined, which is accepted by most states. Technology exists for this, but states are understandably reluctant to switch to digital-identity schemes. However, if they did, that would really lead to tectonic shifts in banking!
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