This compendium is prepared for a special Fintech event by Fintegrate Zone 2019, in collaboration between Oliver Wyman and BRINK/Marsh & McLennan Insights.
The articles contained in this publication are selected based on relevant Digital and Fintech themes considering the event audience. It covers three main aspects related to incumbent banks including strategies for dealing with Digital attackers, optimally leveraging Technology and recognizing evolution of Fintech.
We are entering an age of “digital attackers, those who are challenging the existing paradigms of how financial institutions remain relevant in our lives. The concept of ’ambient finance’ brings financial transactions to life via seamless customer experience. In the race to hold customer touch points across digital ecosystems, FinTechs are well-positioned to dominate customer access. Interestingly, financial institutions and fintech firms are seeking collaboration opportunities to innovate new products or solutions via sustainable partnerships.
However, traditional legacy infrastructure poses a major risk for banks to embrace strategies for the future. Banks’ technology functions need to adapt not only to scalable cloud native platforms adapt new technologies such as AI, Blockchain or Robo-advisory, but also to embrace soft aspects such as new ways of working, dynamic organization and enabling culture.
The next big wave of innovation in financial services will be driven by existing firms taking a greenfield approach that allows incumbents to combine what is possible in a new build with business model advantages of an existing firm. Taking such an approach means tapping into the same flywheel momentum of growth employed by big tech, breaking out of the low-returns cycle. The quality and low cost of new technology, the potential for dramatic change in competitiveness, the reduction in conduct and cyber risks if done correctly, and modern methods for migration, all make this idea compelling right now.