"The recent world financial crisis resulted in a big distrust of customers in traditional financial institutes. In addition, the PSD1 Directive aimed at increasing the Europe-wide competition and participation of third parties in the financial services sector. Those factors served as the basis for an increased competition in the financial services sector. The result was the foundation and rise of FinTechs. To traditional financial service providers, those technology-based start-ups seem to be a threat. FinTechs are more customer-oriented, offer personalized content, and use new technologies. They face challenges and have problems with being in compliance with regulations and lack the years of experience traditional financial service providers have. The PSD2 Directive further challenged FinTechs by bringing stricter regulations and conditions to the market. The solution, which both, FinTechs and tradition financial service providers, can benefit from, is to start cooperating with each other. This allows FinTechs as well as traditional service providers to collaborate rather than competing. This solution has already been implemented as FinTechs are by now more business to business oriented, rather than peer to peer oriented. Further future trends include the blockchain to improve the security. Moreover, RegTechs have emerged that concentrate on regulations."