FinTech market disruption has led to a bifurcation of FinTech providers – Lions and Lambs. See our “Lions & Lambs” company list with commentary at the end of this note.
The FinTech space – whether it be the Capital Markets flavor or the Payments variety – is undergoing rapid change. Within Capital Markets – alternative data providers are challenging the established order – Bloomberg, Thomson and FactSet. A period of consolidation has swept through the Payments space (WP/Vantiv, FISV/FDC, FIS/Sungard, PYPL/XOOM/Venmo) which we expect to continue as large players (AAPL, AMZN, GOOG, Samsung) upstarts (Stripe, Square and numerous others) and the unshackled (PYPL), disrupt the landscape of legacy Payments companies and Financial Institutions.