This year will see the first failed fintech company as more start-ups must begin to prove their worth, according to share portfolio management software provider Sharesight chief executive Doug Morris.
Speaking to ifa, Mr Morris said the "hype" surrounding the fintech sector will move to a different stage in 2016.
"Now we'll see the rubber meeting the road, with fintechs having to prove they really can generate a return," he said.
"I think this year we will see the first fintech to fall over from not having enough customers or being able to generate enough revenue."
Mr Morris also predicted more and more fintechs will partner up with large instos.
"A lot of the disruption talk in Australia is really overplayed," he said.
"Realistically, this year you will see more and more fintechs partnering with the big institutions. The ones that rattle the sabre, claiming they'll take down the banks will be rarer. If taking down the banks didn't work post-GFC, it won't work now."
News
- 05:37Netwealth sees silver lining in Hayne recommendationsBy James Mitchell
- 19 Feb 2019ASIC to ‘fully implement’ Hayne recommendationsBy James Mitchell
- 19 Feb 2019CFS hamstrung advisers as they left for DoverBy Adrian Flores
- 18 Feb 2019ASIC appeals Westpac best interests court decisionBy Adrian Flores
- 18 Feb 2019FASEA mostly funded by the major banksBy Adrian Flores
- 19 Feb 2019Great advisers are going to thrive: Dow JonesBy Eliot Hastie
- view all
