• Home
  • Why Attend
    • For Financial Institutions
    • For Fintech/Tech
    • For Talent
    • Our DNA
    • Contact
  • 2019 Highlights
    • Gallery
    • TOP 400+ FIs
    • Speakers
    • Festival Guide
      • 2019 Agenda
      • Download
      • Live Music
      • Craft Beer
      • Welcome Stage
      • Fintech Stories Stage
      • Strategy Stage
      • Build Stage
      • AITECHTalents – Discovery Day
      • RegTECHTalents – Discovery Day
    • Fintech Stories
    • Secret Shopper
  • Steer Co.
  • Partners
  • Prospectus
  • Insight
    • Awesome Stuff
    • FinTech Of The Week
    • Video Interviews
    • Video Testimonials
    • The Platform
    • Subscribe
  • Get Involved
  • Register

Fintech Talents

Fintech Talents

Kallyas is an ultra-premium, responsive theme built for today websites.

T (212) 555 55 00
Email: sales@yourwebsite.com

Your Company LTD
Street nr 100, 4536534, Chicago, US

  • Home
  • Why Attend
    • For Financial Institutions
    • For Fintech/Tech
    • For Talent
    • Our DNA
    • Contact
  • 2019 Highlights
    • Gallery
    • TOP 400+ FIs
    • Speakers
    • Festival Guide
      • 2019 Agenda
      • Download
      • Live Music
      • Craft Beer
      • Welcome Stage
      • Fintech Stories Stage
      • Strategy Stage
      • Build Stage
      • AITECHTalents – Discovery Day
      • RegTECHTalents – Discovery Day
    • Fintech Stories
    • Secret Shopper
  • Steer Co.
  • Partners
  • Prospectus
  • Insight
    • Awesome Stuff
    • FinTech Of The Week
    • Video Interviews
    • Video Testimonials
    • The Platform
    • Subscribe
  • Get Involved
  • Register

Content

STAY TUNED
  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

Innovation in a pandemic: Why have incumbents not gone Digital Only?

by Our Community / Tuesday 12 May 2020 / Published in Blog, Community, Content, Customer Experience, Featured, Fintech, FinTECHTalents, Innovation, Opinion

Coronavirus has dialled up the urgency for digital only banking. However don’t be fooled by the excitement, digital only banking is starting to gain momentum yes but it will take a few more years before we see a truly cashless world.

Typically, startups and medium size financial institutions hold their data on modern digital platforms with smaller and faster processes, enabling a full set of digital banking offerings and a smooth experience that converts even the most sceptical customers.

However, a big part of the population, especially older generations and customers further back in the digital adoption curve, have most of their savings and accounts with incumbents.

Incumbent banks, due to their acquisitions, expansion history and size typically hold their data in a conglomerate of systems. They are usually semi-interconnected with slower, complex and manual processes, impacting the potential for end to end digital offerings.

As such, moving to digital only is a much more complex task for incumbents than many would expect.

In order to move fully to digital, incumbents will have to focus on both long term as well as short term initiatives:

Data

  • Incumbents can either move their data to new, clean systems, which will be costly and time consuming (projects that aim to upgrade legacy systems or move data to new systems take years to complete). Or they can create a transparent layer to connect the different legacy systems. The latter can potentially be achieved with blockchain technologies or cloud but it is also costly and will require a few years to complete.

Processes

  • Incumbents will have to transform their processes to enable information and insights to move quickly and reliably. In order to do so, automation, machine learning and workflow tools should be leveraged.
  • Although the deployment of such tools are easier and faster to rollout, there needs to be a balance between investment in short term solutions vs process improvements.

Innovation

  • Incumbents should ensure they invest in new digital offerings and partnerships with FinTechs and smaller companies which will have out of the box solutions that can be easily and quickly plugged in.

Although most of the incumbents are already on this journey and have started investment in all of the three areas, the journey has been bumpy with priorities changing between BAU, regulation requirements and digital offerings.

Due to the current pandemic, digital offerings have become a priority and have full support from regulators. Hopefully this will continue in the months to follow. However, as described above, due to company size and the complexity of their processes and characteristics of their systems, it will take a while to be fully deployed.

Additionally, even if digital only banking was fully available tomorrow, some of the consumers are not digitally ready to move fully to digital banking. The financial services community needs to come together to drive digital literacy, training all generations in digital (as seen in the pandemic, relatives and friends have taught and supported other customers with the installation and usage of online tools).

This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organisations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated.

Rita Martins will be speaking at FTT Virtual / Spring on June 10 this year. Register your interest now!

  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

Tagged under: COVID-19, Digital Banking, Rita Martins, Splash

Recent Posts

  • Opening the Door to Financial Inclusion with Digital Identity

    Despite decades of financial inclusion efforts,...
  • Digital Builder

    Welcome to the Age of the Digital Builder

    We sat down with Ian Johnson, Managing Director...
  • Reasons to be cheerful #1 for 2021 – Open Finance Content Now Available On-Demand

    Whilst most of us have no desire to return to 2...
  • digital bank simple

    Will lending bring the disruption we’ve all been waiting for? – The FTT Lending 3.0 Big Question Debate

    Over the weekend, many in the FinTech Twittersp...
  • How Open Banking Will Take Off – An Interactive Session with Yapily

    One of the highlights from the recent FinTECHTa...

Insights, interviews & interesting stuff

SIGN UP

Learn more about our community & events

LEARN MORE

FTT20 - the ultimate FinTech Festival

GET INVOLVED
  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

  • Home
  • Virtual Experiences
    • FTT Identity 2021
    • FTT Lending 3.0 2021
    • Fintech Talents North America 2021
    • Fintech Talents UK & EU 2021
    • FTT Building Societies 2021
    • Fintech Talents Nordics 2021
    • FTT Open Finance 2021
  • Hybrid Festivals
    • Fintech Talents London 2021
  • On-demand Content
    • Interviews
    • Opinion
    • Videos
    • Digital reports
  • VC INNOVATIONS – Accelerated Marketing

GET IN TOUCH

T 0208 0045 517
Email: info@vcinnovations.co.uk

VC INNOVATIONS
21 Bloomsbury Square, London, WC1A 2NS

Open in Google Maps

QUICK LINKS

  • Home
  • Partners
  • About
  • Insight
  • Contact Us
  • Register

Connect with us


RECENT POSTS

  • Opening the Door to Financial Inclusion with Digital Identity

    Despite decades of financial inclusion efforts,...
  • Digital Builder

    Welcome to the Age of the Digital Builder

    We sat down with Ian Johnson, Managing Director...
  • Reasons to be cheerful #1 for 2021 – Open Finance Content Now Available On-Demand

    Whilst most of us have no desire to return to 2...
  • Privacy Policy
Fintech Talents

© FinTECHTalents 2020. All Rights Reserved.



TOP

This website uses cookies to give you the best experience. Agree by clicking the 'Accept' button. Read our Privacy Policy.