fintech and bigtech banking digital transfomation Innovation

Fintech and Bigtech, How have they Changed the Banking Industry?

26/03/19 4 min. read

In the era of Millennials in which we are glued to our Smartphones, our daily lives and routines have changed radically and we have less time for us. Consumers want immediacy, quick transactions and acquiring products and services by putting in no effort. Like the Homo Digitalis, remember?

In this context, the traditional Banking model which we have known since we were little kids has suffered a digital realignment in its way of operating and working with clients.


What’s a Fintech?

Fintech is the union of two words: Finance and Technology. This concept tries to gather enterprises, normally start-ups, which are using current technology to offer new financial products or services.

These enterprises have taken the plunge in the current financial recession, after Lehman Brother’s bankruptcy, to position themselves in the financial market and try to reach clients that did not trust traditional Banks.

Three interesting facts about Fintechs:

  • Spain is the country with the biggest number of Fintechs per number of inhabitants, with circa 300 in 2018.
  • The most common Fintechs worldwide are headed by Asian enterprises: Ant Financial, Zhong An y Oudian.
  • The sole European Fintech within the Top 10 is the German Kreditech.
fintech description

What Bigtechs are about: GAFAs y BAT

Bigtech is a term that unites Big and Technology to give name to the biggest Tech enterprises in the world. Even though Bigtech includes many other companies, the biggest ones have been branded ad GAFA (Google, Amazon, Facebook and Apple). Within this group we can also find big enterprises like Paypal, Samsung and Microsoft. Now it’s the time for Asian companies like Baidu, Alibaba and Tencent, known as BAT.

The difference between Bigtechs and Fintechs is mainly related to capital, more advanced technology and a worldwide presence. And they’re similar in that they were both born 100% tech.

Due to their idiosyncrasy, their huge Internet presence and their market shares both in mobile phones and computers, they have at their disposal a great deal of consumer data to immerse themselves in the financial market.

Any of these companies is a “monster with a bank account so big” that they wouldn’t be afraid to look directly in the eyes of some of the biggest Banks in the world to offer their clients all kinds of financial products. Information is gold, and they have “golden bars of information”.

innovation and technology

How is the traditional Banking Industry coping with this situation?

The traditional Banking System, and specially Group Santander, supported in technology by Santander Global Tech, is acting to compete with Fintechs and Bigtechs in:

  1. Technological innovation, morphing into a digital bank that speeds us all operations their clients need, with 24/7 availability through the network.
  2. Increase cybersecurity measures to avoid all kinds of information thefts or technological fraud. Wanna know how to detect and stop a cyberattack?
  3. Digital signature and not on-site, developing systems that “eliminate the paper”, and that ensure user authenticity, making sure that paperwork signed is 100% legal and valid without the need to go to an office.
  4. Big Data in order to know the client’s requirements and needs better, and to offer them customized products.
  5. Regain reputation with their clients, gaining their trust again and helping them to acquire or hire any financial product in a simple and easy way.

Beatriz Rodríguez

Santander Global Tech

Telecommunications engineer with a long career path in banking technology. Love a good team-work, collaborate and create solutions that make life easier to the users. I spent my free time mostly with my family.


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