Fintech is threatening the jobs of bank employees in the United States and Europe, according to a recent report made by Citibank. The report predicted that between 2015-2025, there could be another 30% in staff reduction. In the past few years, fintech innovation investments have grown significantly. From $1.8 billion in 2010, it rose to $19 billion in 2015. Robo-advisors are calculated to be worth $20 billion, and is forecasted to grow in the US to $400 billion in succeeding years.
In other parts of the globe, China has already past the critical point of disruption. With the biggest e-commerce system, China is currently the leading Peer to Peer lender in the world. Some of its fintech firms have a wider client base, compared to leading banks in the area. In a study backed by a couple of universities, it was noted that China heads the pack in Asia in terms of receiving the biggest benefit from the growth of Fintech.
Australia is also showing signs of interest in Fintech innovations, according to a statement released by the Australian government. It indicated how the government wants to capitalize on Australia’s Fintech sector, making it globally competitive and enabling these disruptions to boost the country’s economy.
The Financial Stability Board had a meeting recently in Tokyo where they reviewed several sectors of fintech innovation, including distributed ledger technology. A framework was also proposed on how to assess any financial stability implications, as well as how to categorize them.