Bank Strategy in the World of Fintech

Fintech (financial technology) is widely seen as a disruptive force in the banking industry. New information-technology (IT)-focused entrants, including large data and platform-oriented IT firms such as Google and Apple, are seen as a potential threat to the position of banks. While banks appear to be still in the lead, information technology and fintech are changing the competitive landscape. Customers have easier access to multiple providers and potentially more transparent product offerings. The traditional bank-customer relationship is more or less gone. The challenges are enormous, from dealing with legacy systems to figuring out viable business models going forward. Agility has become the new buzzword of consultants. Institutions need to become agile to deal with the challenges ahead. But can we give some clarity on what lies ahead?