The Times They Are a-Changin‘
Can FinTechs become the Tesla of the banking world?
One million US dollars made all the difference: In April of 2017, electric car manufacturer Tesla became the most valuable US carmaker with a market value of $ 50,887 billion, sending General Motors into second place. Tesla, a company which was only founded in 2003 and has never made a dime in profit. Future possibilities instead of hard, cold facts – if that is the way forward, FinTechs could profit tremendously by the digitisation of banking.
Life In The Fast Lane
It wouldn’t be the first time David beat Goliath. But in this case, one needs to look at the broader picture. Of course, nobody believes that innovative companies like Tesla will rival GM’s yearly output of 690,000 automobiles any time soon. At the moment, Tesla manages to produce 84,000 cars per year. But Tesla-CEO Elon Musk is doing many other things right.
- His cars define a modern lifestyle.
- His designs and developments are increasingly determining the future of car manufacturing.
- His products offer technical innovations which will be highly in demand in the future.
- His company speaks to a dynamic target group, generating buyers as well as investors.
Rarely before has a major industry faced the necessity of a fundamental change like today’s car industry. No one can seriously predict in which kind of car we will drive around in the year 2050 – or in how many of them. Naturally, visionaries are now a dime a dozen. But Tesla, by delivering a finished product, is already a step ahead. And changing the industry as a side-effect. It will never return to standards set before Tesla came along. Tesla itself does not even have to make good on these standards, the impulses of Elon Musk have developed their own life.
Change My Way Of Living
Many industries have undergone profound changes in the last few years – the media, the music industry, trade and telecommunications. And digitisation was always the catalyst. Right now, the world of finance is looking at elemental upheavals. For decades it was enough to record money transfers and interests in account books. Nowadays, this is all done digitally. Beyond these simple processes lies a world of possibilities – as FinTechs are showing us with their ideas and business models. The similarities to Tesla are striking.
- Their products define a modern lifestyle.
- Their designs and developments are increasingly determining the future of banking.
- Their products offer technical innovations which will be highly in demand in the future.
- Their companies speak to a dynamic target group, generating buyers as well as investors.
Which FinTech will become the Tesla of finance? That is, of course, up in the air. But certainly the digitisation of banking offers FinTechs the chance to shake up the markets à la Elon Musk. All the more reason for traditional banks to become familiar with what digital banking has to offer. And to get in on the action!