> This has been the competitive dynamic within banking, when it comes to product innovation – tiny variations on a theme. > Fintech is painting way outside the

> This has been the competitive dynamic within banking, when it comes to product innovation – tiny variations on a theme. > Fintech is painting way outside the lines and consumers are benefiting from the resulting innovations. I am baffled at both assertions - that banks have barely invented any new financial products in the past century, and that Fintechs are creating new financial products. Both statements seem so far out of line that I suspect the author has little to no knowledge of the financial sector and believes the tiny number of products used by most retail consumers represent the full universe of financial products. The reality is that banks have been extremely creative in creating new products in the decades up to the financial crisis (MBSs, CDOs, CDSs,...). And if you look what happened to those products, you'll be thankful that they've mostly been kept away from retail clients. The 1.5 decades since the crisis have seen less innovation from banks because regulators put their foot down. I've yet to see a genuinely new product offered by a Fintech (unless you count crypto/DeFi among Fintech, which is usually considered to be separate).