Keeping up with the FinTechs: A banker's strategy for digital transformation

Abstract

Consumers are expecting more from their banking experiences and engagement, thereby forcing banks to rethink their digital transformation strategies. These new expectations are no longer shaped by competing peer banks and their offerings, but by Apple and Google and smaller, more nimble FinTechs who are delivering digital offerings that are reshaping what consumers want and how they want it. The mounting fear that a banking equivalent of an Uber or Airbnb will emerge and take customers away is real and stems from a growing threat. These changing dynamics in the financial services industry are fuelling the need for more innovative digital money experiences. While technology is going to play a pivotal role in helping banks get where they need to be, the latter are currently hampered by inflexible, legacy technology infrastructures that are making change very challenging. This paper explores trends in consumer demand, the emergence of new digital players and how these forces are influencing the traditional banking landscape and paving the way for successful digital transformation.