Big technology firms such as Amazon and Google have had a bigger impact on the development of banking systems than fintech has, according to research by the World Economic Forum (WEF).
Fintech companies have transformed the way financial services are structured, offered and consumed, but they have not themselves managed to become dominant players in the market, it said.
"For years fintech has been the hottest topic of discussion in financial services", the WEF said in a report published this week on disruption in financial services.
However, while fintech companies have "materially changed the basis of competition" in financial services, they have not yet materially changed the competitive landscape itself, the report said.
Fintech businesses have pushed the pace and direction of innovation but "have struggled to overcome the scale advantages of large financial institutions", it said.
Customers have been less willing to switch away from incumbents than expected and new innovations have not been enough to encourage them to do so. The smaller companies have also struggled to create the infrastructure they need and to establish new financial services ecosystems, such as alternative payment rails or alternative capital markets, the WEF said.
"They have been much more successful in making improvements within traditional ecosystems and infrastructure," it said.
The situation creates risks for the financial services industry...