My formert teacher and mentor, Ismail Ertuirk, nails it on the head with this brief post on the challenges of FinTech startups to really challege established providers. He clearly mentiones the issue of core capabilities to be a credible competitor and how Ant Group business model looks like big retailers today (ie shops withind shops) as opposed to the integrated model of established banks.
From the author (in Likenedin)
#wirecard scandal is more than a failure of audit and regulation. It is also a failure of #fintech policy in the EU. German and the E.U. authorities’ response to #wirecard scandal is narrow-minded ignoring the lessons from contemporaneous global trends in #fintech, especially the transformation of Ant Group from being largely a payment #fintech to a #fintech group that consists of financial services platform business and complementary joint ventures with the likes of #vanguard for retail banking products. This new business model in financial services is expected to make Ant Group, after the expected IPO, more or less the third largest bank in the world by market capitalisation, bigger than the likes of Citigroup and HSBC. #fintech in the EU can only be truly successful to disrupt the existing dysfunctional European banks if the EU creates a genuine single market in financial services to support its open banking reforms. See my opinion piece for Radix ThinkTank .
Full article – 9 min read