Rich pickings for a disruptor

Small, nimble players are punching above their weight in wealth management

- Scott Phillips

This time last year, the word fintech would have conjured up thoughts of successful buy now, pay later businesses and the so-called neobanks – banking disruptors set to take on the big four.

One year later, the finance scene looks very different – but very similar. If anything, buy now, pay later is even more entrenched than it was, with the big banks, and even Apple, taking an “if you can’t beat ’em, join ’em” approach. While the new banks are struggling to get a decent foothold as a group, one or two, mostly notably Judo Bank, have made decent strides.

It is a reminder, perhaps, that innovation isn’t enough.

And that in many sectors, the leading edge quickly becomes the bleeding edge and the real money can be made by agile incumbents who are “fast followers” rather than those who pioneer the innovation. (Witness the folding of a few ultra-fast grocery delivery companies, followed by Woolworths rolling out a trial of the very same concept.)