From CB Insights: “The graphic [above] details companies attacking bank services ranging from robo-advisers wealth management services like Wealthfront and Betterment to small business loan companies like OnDeck Capital and Kabbage to small business service providers like Zenefits and ZenPayroll, and many other areas.
…these emerging companies attacking Wells Fargo, Bank of America, Citi and banking more generally are not attacking them head on across multiple products. Instead, they’re attacking individual services & products (hence the term “unbundling”). Said another way, are banks going to be out-innovated and lose their edge not because of their incumbent, large competitors, but because emerging startups inflict upon them a death by a thousand cuts?”
From Wired, April 13, 2015:
In his annual letter to shareholders, JP Morgan Chase CEO and stereotypical master of the universe Jamie Dimon seemed uncharacteristically concerned. Hundreds of startups with lots of brains and money were hard at work on alternatives to traditional banking, he wrote: “Silicon Valley is coming.”
And he’s not the only one paying attention. From peer-to-peer lending to mobile payments, new tech-intensive ways of managing your money are booming. These startups sell themselves aggressively as improvements on the hidebound world of old-school banks and brokerages. And though most of these alternatives are untested, Wall Street is starting to worry.