‘There’s now a third increasingly influential constituent: the developer… The rise of a developer as buyer in financial services companies of all sizes favors new entrants.’ – Angela Strange
Angela Strange, General Partner at a16z, foresees a significant shift in the financial services sector by 2024 – the rise of developers as primary decision-makers.
This transformation is propelled by the increasing influence of developers on purchasing decisions and the transition from traditional banking to code-driven financial services.
Table of Contents
- Developers: The New Decision-Makers
- Favoring New Entrants
- Challenges for Traditional Institutions
- Impact on Financial Services Industry
- Code-Driven Financial Services
- Preference for Composable Blocks
- Rethinking Legacy Software
- Generative AI Driving Change
- Regulatory Shifts Influence Trend
- Improved Consumer Experience
- Reduced Maintenance Costs
- Efficient Handling of Edge Cases
Developers: The New Decision-Makers
By 2024, developers are predicted to emerge as key decision-makers in financial services.
This shift is fueled by their growing influence over purchasing decisions within large financial institutions and insurance firms.
Favoring New Entrants
This trend favors new fintech companies that prioritize excellent developer experiences.
These organizations are focusing on creating developer sandboxes for customers to try before they buy and are even open-sourcing parts of their solutions.