Powered by MOMENTUM MEDIA
subscribe to our newsletter

Fintechs to ‘shrink’ role of banks

The current disruption posed by fintechs has “the potential to shrink the role and relevance of today’s banks”, a prominent banking sector executive has forewarned.

The product of a panel discussion between banking sector executives and new fintechs, the Fintech and Banking: Collaboration for Disruption Report 2016 provides insights into emerging themes that will impact on the banking world.

According to the report, the banking sector “finds itself at a crossroads”, as the GFC has forced it to take a strategic turn and review its standards.

“This is a revolution which has only just begun and one in which banks have found new allies and rivals, depending on how they approach it,” the report said.

The report went on to say that the lines between bank-owned and operated services and those delivered by new players and external partners have become “blurred”.

Advertisement
Advertisement

“The result is that traditional banking services are being disintermediated,” it said.

Lender and Axis Corporate managing director Daniel Meere commented: “Banks must recognise that fintechs are players who are here to stay in the sector and that they will, with varying degrees of success, overcome the barriers they currently face.

“The current disruption has the potential to shrink the role and relevance of today’s banks. [But] we believe that by putting the customer at the heart of their visions, strategies and innovation initiatives and collaborating with the right fintech firms, banks can create better products and services that make them an even more essential part of the new banking age,” he said.

Vincent Bastid, the secretary general of financial association Efma, added that fintechs are challenging the traditional retail financial services landscape which is something that banks cannot ignore.

He explained that the findings from the panel discussion show that most industry experts believe that a joint-venture approach between banks and fintechs will “foster the most successful industry ecosystem”.

PROMOTED CONTENT


“If they can achieve this, then they will be able to create a product offering that will better attract and retain customers, and ensure longevity well into the future,” Mr Bastid concluded.

[Related: A checklist for fintech success]

Fintechs to ‘shrink’ role of banks
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

Revolut has recruited from 86 400 and Citi for two senior additions to its local team, including a new head of lending. ...

The RBA has stated that APRA succeeded in curtailing a drop in home lending standards by implementing macro-prudential policies between 2014...

Analysis of cash rate changes has found property price growth is less dependent on low interest rates than commonly believed, according to a...


Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.