Chris Skinner's blog

Shaping the future of finance

FiBD: The FinTech Bullshit Detector

Chris Skinner Author Avatar
by

I’ve been wondering for a while how so many companies can be starting up something in the same space, and how are they surviving?  The reason for mentioning it is that we keep hearing these numbers around how many billions are being invested in FinTech, bitcoin, blockchain and such like, and yet I cannot see the unicorns.  Well, not many anyway.  How many can you name?

A couple of years ago there were 84, according to Jim Bruene on the Finovate blog, and yet now?  OK, so there’s a raft of them in China, but then China is reinventing the game.  In the States, there’s Stripe and Square … there was and is Lending Club, but some say it has lost its way.  There are a few more, sure, but it’s not a big list.

Then there’s the blockchain bit, and not a single unicorn there yet, unless you count bitcoin the currency.

This slightly concerns me as you would imagine there would be more breakout firms by now.   After all, it’s over a decade since the FinTech revolution began – I personally place my first FinTech firm as Zopa, which launched in April 2005 – and the market is still nascent.  Equally, for every firm that has broken out, there are dozens that have not.

How many FinTech failures are there?

Again, there was the notable implosion of Powa Technologies due to bad management, but how many others are there that you don’t hear about?   And am I just finding this question rising because I meet so, so, so, so many new start-ups with bright ideas and big ambitions?

Now don’t get me wrong. I haven’t turned into a bear on the FinTech scene.  No, I’m still bullish, but I am getting to the point that if anyone else comes up to me and says we’ve got this great solution for KYC or we’re doing things the banks cannot even imagine or this is going to be the most disruptive software you’ve seen yet or this is the next bitcoin, I’m going to scream.

That is why I’ve invented the FinTech Bullshit Detector, FiBD for short.

It works the same as buzzword bingo, and sits in the back of my mind whenever I hear a pitch.  The buzzword bingo terms in the pitch must include at least three of the following:

  • Disruption
  • Open
  • Breakthrough
  • Gamechanger
  • Innovative
  • Millennial
  • Leverage
  • Next Generation
  • Platform
  • Legacy
  • Digital
  • Democratisation
  • Anything ... as-a-service
  • Marketplace

In fact, our good friends over at Leveris have already generated one (thanks to @IamSMoloney).   Here's a few examples of what they came up with:

Bitcoin crypto-ecosphere incubates API-friendly functionality
Full-service remote server stack integrates Gen Y millennial crypto spend
Neobank disintermediation offers external innovation in return for cashless payment
Oooooooooo ... it's enough to make you bite your fingers off.

So, now you know that if you pitch to me and I say: you’ve been FiBD, that you just reached my point of least interest.

OK, let’s get on with the day.

Chris Skinner Author Avatar

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

Intelligent Money: Our Future Is Where We Do Not Think About Money, As Our Money Thinks For Us

What is the future?

Learn more

Learn more about Chris

About Chris Skinner

The Past, Present And Future Of Banking, Finance And Technology

Fintech expert Chris Skinner: countries need digital transformation to remain competitive

Join me on Linkedin

Follow Me on X!

Hire Chris Skinner for dinners, workshops and more

Learn directly from from one of the most influential people in technology, gain insights from the world's most innovative companies, and build a global network.

Chris’s latest book

Order now

Chris Skinner’s ‘Intelligent Money’ Book Launch Event

Top 50 Global Thought Leaders and Influencers on Finance 2024

Global Awards

Lifetime Achievement Award

Global 100 - 2024 Winner

Chris Skinner - Financial Markets Advisor of the Year - The Finanser - UK 2023

Best Financial Markets Advisor of the Year 2023

30 Best Regtech Blogs and Websites 2023

Kids creating the future bank | TEDxAthens

Captain Cake and the Candy Crew

Captain Cake Winner of a Golden Mom’s Choice Award

TWO-TIME WINNER OF A MOM’S CHOICE GOLD AWARD!

Alex at the Financial Services

Gaping Void's Hugh MacLeod worked with the Finanser