Is this the rebirth of banking?
The financial services industry is being disrupted by more than 20,000 fintech start-ups – currently valued at over USD 100 billion!
It’s no secret the financial services industry has been under pressure since the 2008 global economic crisis. Margins are tighter. Regulatory pressure is constantly increasing. Customer behaviour is changing in the digital era.
But the real shake-up is still to come …
An opportunity to develop the next great app – with the lure of financial gains in offering innovation to customers – has attracted tech entrepreneurs to the exploding world of financial technology, or fintech as it’s come to be known.
Focus on areas like easing payment processes, fraud reduction, saving customers’ money, and promoting financial planning, are ultimately propelling one of the largest industry sectors into the future.
Fast, personalised UX
Traditional financial services models are being turned on their heads by way of the burgeoning start-ups. And the change is most prominently being driven by consumer expectation of personalised service with the convenience of mobile and social technologies that are so embedded in everyday activities.
Traditional banks will need to embrace this surge of digitisation if they want to survive. They are realising that to stay relevant, they’ll need to radically change their core business model – and that change will have to happen quickly.
Starting today, they have to implement the foundational technology that will enable their digital transition – allowing them to engage with the next generation of consumers and perpetuating their growth and shareholder value.
This digitisation will leverage new technologies like AI, analytics and deep learning, Internet of things, robotics, geofencing, and blockchain.
So … what’s next?
Financial services providers are poised to establish new partnership ecosystems and regulatory frameworks. They have an opportunity to make financial trading more efficient, improve regulatory control, verify proof of source, and eliminate unnecessary intermediaries and time-intensive manual processes.
Migrating key operations to cloud platforms, operated by external partners, and developing mobile and online apps is a critical first step in the process. If not already completed, these should be prioritised with some urgency.
Enterprise collaboration and communication platforms would be the next logical step. Solutions such as Microsoft’s Office 365 combined with Skype for Business provide a powerful and effective solution. It allows colleagues to share documents, communicate via instant messaging, and via real-time voice and video collaboration. All this ultimately delivers better client service.
Seems overwhelming? It doesn’t have to be.
Check out our latest thinking for more, and learn how Dimension Data can help you take your financial services business into future.