Are fintech startups losing their edge to traditional banks adopting digital strategies?

Honestly, kinda feels like that, right? Fintechs definitely pushed the industry forward with speed, user experience, and innovation—but now that traditional banks have caught on, the gap is closing fast.

Big banks are throwing serious money at digital transformation. They already have trust, licenses, customer bases, and resources that fintechs often struggle to build from scratch. And now they’re offering features that used to be fintech’s edge—instant transfers, sleek apps, budgeting tools, etc.

That said, fintechs still have an advantage in agility and niche innovation. They can move faster and focus on specific pain points (like Gen Z banking, underserved communities, or alternative credit models).

So maybe it’s less about losing their edge and more about the playing field getting crowded. The real challenge now is standing out and offering something truly different. What do you think—are banks just catching up, or are fintechs slowing down?