One could argue that fintech companies compete with banks. While this narrative is true in some aspects, the fact is that banks are also investing in fintech companies. U.S. banks, for instance, have invested US$3.6 billion in 56 fintech startups in 2017.
JPMorgan Chase, for one, invests US$11 billion each year on its internal team of technology researchers and developers—a group comprising 50,000 people. The company also partnered with various fintech startups worth US$600 million.