Interesting Article from Devie Mohan where she points out that Fintech is resulting in our high-street banks and institutions having to revolutionize they way they do business.
For the last 20 years I have acted for Banks contracting for Payments related software and services - but- fundamentally continuing to rely heavily on their proprietary legacy systems - resulting in those banks continuing to engage with their customers in the same way- but perhaps a little more efficiently.
We are now moving past that approach- and as Devie says- its all down to you and I wanting to bank on our mobile device from the comfort of our couch.
Viva la Revolution !
Lending, payments, big data & analytics are the three major areas of investment by banks (these also happen to be the earliest areas of investment). The investments made into firms such as FastPay and OnDeck in the early days were seen as supportive of innovation, but without any plans to integrate the offerings immediately into the bank’s banking systems or product portfolio. However, with reasonably heavy investments in 2015 into firms such as Stockfuse (that attempts to develop consumer trading behavior) and MX Technologies (that provides omni-banking across silos in banks), banks are exhibiting an immediate desire to change. The fintech firms are putting more pressure on banks to innovate and launch customer-centric offerings, and investing is one way the banks have responded to the increased pressure.