The Fintech Revolution: Why the Predictions Have (Not) Come True

Fintechs in the Netherlands appear unable to compete on fundamental grounds with major banks such as ABN AMRO, ING Bank and Rabobank. By means of interviews with representatives of fintechs, policymakers, supervisors and academics, research was conducted into the extent to which the predicted fintech revolution has failed, which obstacles fintechs experience and whether the introduction of a CBDC can stimulate the fintech revolution. Banks may not have been outcompeted by fintechs, but financial services have indeed been fundamentally changed by the application of digital technologies. Fintechs appear to face five obstacles in their competition with large banks. Depending on design choices, the introduction of a CBDC could reduce the dependency relationship of fintechs on banks and promote diversity in the monetary-financial system.