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But “fintech” start-ups are nimble piranhas, each focusing on a small part of a bank’s business model to attack. If enough of these start-ups have an impact, the banks could suffer from a slow bleeding of their overall revenues. Here is a guide to some start-ups that are aiming to take income from the banks.
Adyen
This Netherlands-based company is attempting to cut banks out of the payments process, both online and in stores. It already handles online payments for companies such as Netflix, Spotify and Uber.
But it is now expanding its technology offering to allow merchants to take in-store payments using internet-connected devices.
GoCardless
The London-based company allows small businesses to take direct debits or recurring payments, such as monthly subscriptions, via apps or websites.
iZettle
This Swedish company has created credit card-reading devices that can be attached to phones and tablets, allowing individuals and small businesses to take card payments. This means that even market stall holders and ice-cream van owners can process such payments.
Coinbase
This San Francisco start-up is at the vanguard of companies building businesses around the bitcoin, the digital currency. It has created an online wallet that allows people to store, send and accept bitcoin payments. It has also launched an exchange that allows people to change real-world money into the cryptocurrency.
Wealthfront
This US start-up offers an “automated investment service” — software that automatically makes investments and financial decisions for its clients — work traditionally done by well-paid asset managers. Wealthfront claims that its algorithms are just as competent, and will open up investing to the less wealthy.
Osper
A London-based start-up that offers mobile-only banking services for children while providing parents with a degree of control over their children’s cash. Osper creates current accounts with separate login details for parents and children. Accounts, which have no credit or overdraft facilities, are accessed via an app.
Osper also creates pre-paid debit cards, which can be used to make withdrawals at cash machines, or for in-store or online purchases.
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