Fintech is becoming a powerful force. Last year $2 billion went into the industry. Some have proclaimed fintech is everything and everywhere.
This misses a key subtlety: not all fintech is created equally. Like all innovation (and as I argued in my recent book: Out-Innovate: How Global Entrepreneurs – from Delhi to Detroit – Are Rewriting the Rules of Silicon Valley, HBR Press) some entrepreneurs disrupt while others create.
Fintech, when done right, can create entirely new product segments or markets. It can address needs in better or lower cost ways and align interests between company and customer. As it scales, this kind of innovation doesn’t just build large businesses – it can deeply impact customer lives.
Below, we’ll explore four example of this phenomenon and recommend practical principles for new entrepreneurs to become creators.