Innovative Fintech Startups: What does the Future hold for Financial Institutions in Kenya?

Fintech startups play an important role, particularly where traditional financial institutions are unable to meet the growing need of the customers. Fintech startups combine IT and finance to develop financial services without the assistance of traditional financial institutions, but the sector is so fluid that startups must innovate continuously. This paper focused on Fintech Startups. The research was anchored on the balanced scorecard model, Schumpeter’s theory of innovation, and the lean start-up framework. Existing secondary data on fintech start-ups was analysed. The findings indicated that Kenyan government regulations, user authentication, and Government bureaucracy remains a serious hindrance to the future of startups. However, with growth of Fintech startups in the country the future is promising and thus changing the land scape of the traditional financial institutions. The study recommends that the governments could allow Fintech startups to visionary new products and technology to meet underserved customer requirements while enforcing light regulations contact in the early phases. The tradition financial institutions should collaborate with the Fintech firms to strengthen their competitive edge and thus performance.