Monday 12 December 2016

Disadvantages of FinTech

Fintech also have a disadvantage such as:

- Services was not security, or trust, or lack of technical knowhow

- Enormous operating cost stemming from multi-layered management structures and large offices in prime locations. High overhead costs means they have a hard time competing with flexible technology companies focusing on specialty areas and lower cost of operation.

- Some firm are part of a highly regulated industry. While regulations are necessary, they affect the banks’ agility, innovativeness and ability to compete effectively. This has led to an industry where the major players offer more or less comparable services at more or less comparable (and high) prices.


-The ease of making and receiving payments has set the tone for far greater disruption of the banking industry:

1 comment:

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