When Will The Modern Fintechs Become The New Banks?

It may take 10-20 years, but for the first time, I believe we’re closer to a seismic shift in banking—and all of finance—than I previously thought. JP Morgan is nearly a $1 trillion bank, the first of its kind. Meanwhile, stocks like PayPal and Robinhood have been crushed since their post-2020 highs. The fact that I’m writing this now may seem surprising, but the rise of fintech is simply too big to ignore.

The chart below shows the performance of Robinhood, Coinbase, PayPal, and Block since the post-Covid crash. Despite their struggles, they’re all starting to re-emerge.

Robinhood, for example, has quickly built a robust retirement and wealth management division in just 1-2 years. This is just the beginning. These companies can move faster, think in new ways, and appeal to a younger demographic far better than traditional banks. Over 10-20 years, that’s a huge advantage.

Although much of fintech’s infrastructure is still reliant on traditional banks, these fintechs are better positioned to leverage AI and crypto to build faster, more efficient financial systems. The rise of decentralized finance (DeFi) and AI-powered platforms will likely accelerate this shift. The companies that succeed will:

• Cut costs for clients
• Improve viral marketing
• Emerge as strong, innovative brands
• Create products for the next generation of investors
• Streamline processes, reducing back-office paperwork

The democratization of investing is already happening, and these trends are only growing:

• Retail investors now account for 20-25% of U.S. equity trading volume, up from around 10% a decade ago.
• Commission-free trading has significantly lowered barriers for everyday investors.
• The COVID-19 pandemic accelerated digital adoption, pushing more users into the fintech ecosystem.

While these are long-term trends, I’m confident that by the time I’m well into my 50s, the banking landscape will look very different.Disclaimer: This is my personal opinion and not financial advice. I only share for education and entertainment!

Disclaimer: Never advice! I only post for entertainment and education.

Written by Stefan Cheplick, a fintech builder and writer with experience at Stocktwits and TradingView. Background and published work.