Fintechs: a Lot of technology, the less business sense

The hype Fintechs, so young companies that promise to revolutionize by new technology, the industry of financial services was strong in the past years. A lot of

Fintechs: a Lot of technology, the less business sense

The hype Fintechs, so young companies that promise to revolutionize by new technology, the industry of financial services was strong in the past years. A lot of equity and venture capital flowed into business Start-ups. As financier to the industry, the Frankfurt-based Finlab is specialized. The "early stage investor" is currently involved, directly and indirectly, in 23 companies. The most famous of which is likely to be Deposit Solutions, savers most likely to be on the platform interest-pilot familiar.

Martin Hock

editor in the economy.

F. A. Z.

With the development of one's own investments member of the management Board Stefan Schütze is quite satisfied look, but otherwise, surprisingly critical of the industry, and not just because of the operations to the payment processor Wirecard. It Finlab was involved never. "Payment processors for us as an early stage investor at the time of our launch in 2015 already is generally much too large. This is an exciting field of business, but the money does not grow on trees. It is primarily a volume business.“ In the Sepa area is earning for the provider, hardly something to, in international payments it look better. "In General, but processors are rated too high."

Also from other areas of the shooter is not very convincing, especially when it solutions comes to the Consumer. In many cases a new Start might bring-ups copies of other business models. "As Transferwise was established next to the platzhirsch Western Union in the store with international transfers, it was innovative and worked. But on the Finovate trade show other Fintechs came up with the same idea. According to Transferwise, this can be all only a niche player – even if your technique should be a bit more sophisticated than that of Transferwise.“

to many Online brokers contactors in doubt. "What earned you money when it's required minimal or no transaction fees? So you have to save costs, and this means that service quality suffers and in the whole Segment, the margins are eroding.“ Some brokers such as next markets could be the processing of share orders with margins from the trading of contracts for difference to compensate for. "But in the end, this is a cut-throat competition. Because the number of potential customers increases.“ In business with consumers, it is a mark of education. The Robo-Advisor is Scalable, for example, the managed or comparison platforms, how to Check 24. There was simply nothing to find. "In General, the consumer business is pretty much stripped," says Archer.

FINLAB AG NA O. N. -- -- (--) Xetra lang & Schwarz tradegate Stuttgart Frankfurt 1T 1W 3M 1J 3J 5J For detail view

Quite different is the company's business, to which Finlab focus more. The banks are in a profound transformation due to digitalisation, but also on the Compliance side, because innovative solutions come just at the right time. "SaaS, Software as a Service – because you can still make money." And because we are positioned with our own interests well, such as with the E-ID-identification service Authada. Sagittarius promises, and there is also a lot of the enforcement of the Online card in the Authorities.

The topic of Blockchain'm only still at the beginning. This shooter has not currencies so much Crypto and digital securities in the eye. "After the entry into force of the crypto-detention act, the Bafin has been inundated with a high two-digit number of applications for Authorisation. In the custody solutions, there is also a price war, and the managed volume will still be low. We see the Whole, therefore, rather than a transfer issue – so that established players to incorporate the technology of the Startups in this area.“

Updated Date: 20 July 2020, 12:19

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