Fintech Forecast
by Emily Hier
Citigroup forecasts that fintech will have a major impact on banking, cutting 2 million jobs in Europe and USA over the next decade - that’s around 30%.
No wonder big banks are wary of new tech. Under huge pressure to return to pre-2008 profit levels, they are struggling under the weight of new regulation and are finding it hard to grow lending.
This forecast could be a real “Uber moment” for banks.
Customers’ expectations have changed massively. Startup banks like Mondo and Atom are attracting thousands of sign ups because they offer the social media experience, as well as real-time support and account access 24/7.
But they will find that consumer confidence is slow to build. It’s a big risk putting your trust in a bank that’s only in beta phase. For historical reasons, the big banks have consumer confidence in spades - despite the many outages suffered by their legacy machines that process millions of our transactions every day.
But as emerging technologies like Blockchain gain ground, and as digital currency payments and trading platforms proliferate, consumer confidence may come easier to the newcomers.
Banks are no longer feared and respected like they used to be. They’re the dinosaurs of our generation and they need to buck up, take a leap of faith and start collaborating with the fintech community.
After all, we’re at the forefront of a digital revolution. Sure, the Internet of Things is peppered with triviality - such as this $700 juicer that has been connected to wifi for no apparent reason. But the revolution is real for all that. Large companies whose agility lets them down will be the ones to suffer.
For them, it’s time to think like a startup and act like a player.
It’s not just the retail banking customer experience that needs an overhaul. What about the fiendishly complex mainframe that lies behind every bank? More details here about the Black Box Swamp.
Image courtesy of techinasia.com