A Journey into Fintech: From Telecom to Transformation (Plus Book picks)

I stumbled into the banking and payments industry quite by accident. My career in IT sales began in the telecom sector during the early 2000s, a time of rapid innovation and change. Working with clients, our team helped implement cutting-edge technologies reshaping the industry, from Transparent LAN and Private Line Services to advanced networking protocols and high-speed data transmission methods like Packet over SONET and GigE.

The seismic shift of the 2008 financial crisis was a pivotal moment—a teachable moment for many of us who were present. As I pivoted to a role in product engineering and technology services sales in Banking and Finance, I found myself addressing challenges faced by our clients, focusing on legacy modernization in core banking systems, mortgage servicing platforms, and capital markets infrastructure. During this time, I witnessed the unbundling of financial services begin, revealing vulnerabilities in areas once considered safe havens for larger banks and their regional counterparts. These institutions, which had long been the backbone of not only small business growth but also sectors like healthcare, construction, and retail, suddenly grappled with unforeseen risks. The crisis reshaped the financial landscape, prompting significant regulatory changes such as the Dodd-Frank Act. It underscored the interconnectedness of financial services with various industries, highlighting how banks play a crucial role in supporting economic stability across multiple sectors.

The birth of fintech was gradual, evolving from a buzzword into a term that defined an entire industry. This transformation was fueled by industry stalwarts advocating for the digitization of banks and the rise of branchless banking. As these ideas gained traction, specific financial services began to be unbundled. Consumer fintech led this charge, attracting significant investments into personal finance management tools and trading applications. This trend was followed by innovations in areas such as lending, payments, and insurance, further expanding the fintech ecosystem.

As I immersed myself in this new world, I devoured every book and podcast on payments and fintech that crossed my path. “Priceless: The Case That Brought Down the Visa/MasterCard Bank Cartel” by Lloyd Constantine offered an insider’s account of the landmark antitrust lawsuit that reshaped the credit card industry. Brett King‘s “Bank 4.0: Banking Everywhere, Never at a Bank” opened my eyes to the future of banking, exploring how technology is fundamentally changing financial services. Glenbrook Partners Payments Boot Camp that I attended in NYC was like a crash course in payments, where I learned more about the evolving landscape than I ever thought possible—who knew payment systems could be so riveting? Ahmed Siddiqui‘s “The Anatomy of the Swipe” became essential reading, breaking down the complex flow of money and information in payment transactions. These resources, among others, formed the foundation of my understanding of the fintech revolution and its far-reaching implications.

Fast forward to today, and the U.S. fintech landscape has transformed dramatically. Open banking and open finance are reshaping how consumers interact with their financial data, while issues like data privacy and regulation are at the forefront of discussions. Although funding has seen a downturn since its peak in 2021—global fintech investment dropped to $75.2 billion in 2022—the industry is witnessing a renewed sense of purpose and innovation.

Recent trends indicate exciting developments on the horizon: open banking regulations proposed by the Consumer Financial Protection Bureau in October 2022, embedded finance projected to become a $7 trillion market by 2030, and an increasing number of fintech companies planning to implement AI solutions.

I am genuinely excited about the future that awaits us. The growing emphasis on sustainable finance, the innovative potential of AI-driven risk assessment, and the commitment to financial inclusion are not just trends—they’re paving the way for transformative opportunities. As we embrace these advancements, we have the chance to create a more equitable and efficient financial landscape that benefits everyone.

I’d love to hear your thoughts! Feel free to reach out at [email protected] or my personal email, [email protected]. Let’s connect and discuss what you’ve been up to in this ever-evolving landscape.