Will banks be able to respond to the digital change?Sep 27, 2016 Blog Banks , FinTech
Will banks be able to respond to the digital change in time or will they miss the tipping point and die from the improvement of the internet?
Books, music and photography are industries which have been demolished by digital. Although data is the greatest asset to banks, they hardly use their data assets and they are structured inefficiently in product silos that lack customer awareness.
Cryptocurrencies are remodelling the digitisation of money and currency and thousands of companies are now launching new innovative models of managing money and value. Over the past 25 years it has been proven that regulation, compliance, audit and governance requirements along with capital reserves show that very few can get into the banking game. However everyone forecast that banks were dead over this period and would be disintermediated and that still hasn’t happened.
Most bankers who understand the Fintech change say that Fintech start-ups will change the banking business. They say that cryptocurrencies are designed to wipe out the banks processing structures and that P2P will wipe out the credit product offers. The problem with this is that these bankers are not sitting in the decision making seat and it’s a struggle for them to get their voices heard in upper management.
The upper management decision making team is usually more comprised of diligent bankers who have spent many years with regulations and compliance. They believe that they only need to change for regulatory or competitive forces.
So the question is, are we going through a banking Kodak moment, or are senior management correct in saying that we only need to change at the speed of the fastest competitor?
You can read the full article on Chris Skinner’s Blog here.