Digital revolution, along with fintech disruption, has introduced many novelties. One of them indicates that the future of banking does not belong exclusively to banks anymore. The banking landscape is changing with the transformation of financial service delivery and competition on the rise, particularly with the boom of fintech startups.
New companies driven by young people and fuelled by ambition and digital knowledge, striving for innovation, unburdened by legacy technology systems and bureaucracy, are ready to move quickly and be a game-changer. However, modern banks and alternative payment service providers will face other important competitors, such as telecoms and social media networks, according to ASEE survey. As traditional banking processes are undergoing digital transformation, greater agility and advancements in digital banking services are also expected from brick-and-mortar banks.
Some banks perceive the fintech phenomenon more as an opportunity to innovate than as a threat. To them, the fintech boom represents yet another incentive to overcome major impediments to digital transformation, such as disconnected technologies, outdated operating models and resistance to change, which delay the improvement of customer experience and meeting expectations of digitally native consumers.
The future of finance is still not completely clear, but its direction is certain – customer-centric, innovative and agile. So the question remains – Can fintech companies pose a challenge to the banking industry and encourage bankers to come up with innovative products and services?
Brett King, CEO of Moven and one of the best-selling authors and renowned speakers on banking industry topics, provided his opinion on different approaches to digital banking transformation between fintech startups and traditional banks. To learn more, check out this short video: