Page 15 - May 2018 Disruption Report Flip Book

DIGITAL BANK JANMUAAYRY20210818
DIGITAL BANK
The bank of the future
Citi GPS’s Kathleen Boyle wrote:
...[T]he question for banks today is how do they become Digital Banking Superstars versus going the way of the dinosaurs. The future of finance is an ever increasingly converged ecosystem where consumer and small and medium enterprise (SME) financial services
are provided by banks and by platform companies with roots in e-commerce and social media. For an incumbent bank to become a Bank of the Future and not remain stuck
in the past, they must look not only at new technologies such as artificial intelligence, machine learning, and other forms of automation, but they must also look to overhaul their operational systems and technology systems.
...[W]e believe are the ABC’s of digital disruption in finance— Artificial Intelligence, Big Tech, Core Banking & Cloud, and Digital Assets—and identifies ways that incumbent banks can adopt/embrace these disruptive factors and drive their businesses forward.
For an incumbent bank to evolve into the new landscape will require (1) senior leadership teams to be focused on digital transformation; (2) relatively simpler business mix by geography and products; and (3) the cushion of better existing financial returns that allows management to divert their attention from near-term firefighting.
...Traditional banking is being challenged not by small FinTech startups, but by established tech giants [e.g., Facebook, Amazon, Apple, and Google], because of
• Large and captive user bases
• Low online acquisition costs
• Big data customer insights
• Internet banking licenses
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