TEHNOLOGII BANCARE | ENGLISH

Digitalization will make most traditional banks irrelevant by 2030, according to a Gartner report

Trimite stirea unui prieten
Nume *
E-mail *
E-mail prieten *
Mesaj
Cod validare * Turing Number
Tastati codul din imagine (doar cifre)
195.154.184.126

Autor: Bancherul.ro
2018-11-05 10:57

By 2030, 80 percent of heritage financial services firms will go out of business, become commoditized or exist only formally but not competing effectively, according to a Gartner statement.

These firms will struggle for relevance as global digital platforms, fintech companies and other nontraditional players gain greater market share, using technology to change the economics and business models of the industry.

David Furlonger, vice president and distinguished analyst at Gartner said banks face a growing risk of failure if they continue to maintain 20th century business and operating models.

“Digital transformation is largely a myth as institutional mindsets, processes and structures stand firm,” said Mr. Furlonger. “Established financial services providers will have to move faster on digital business by building digital platforms or finding niche products and services to sell on others’ platforms.”

According to Gartner’s 2018 CEO survey, while financial services CEOs continue to prioritize revenue growth, there has been a clear shift toward emphasizing efficiency and productivity improvements and the importance of management as growth levers. This shift indicates that digital business is predominantly a channel and transaction automation play, focused on business optimization as opposed to a transformation.”

Pete Redshaw, practice vice president at Gartner, said this attitude is dangerous.

“It underestimates the degree of change that digital technology will bring to the industry,” he said. “The future of the financial services industry is increasingly weightless, requiring few physical assets to establish or maintain a presence. That makes the industry especially vulnerable to disruption by digital competitors.”

In addition, emerging technologies (such as blockchain) offer transformational opportunities by creating trust between parties that do not know each other, without intermediary relationships that incumbent financial firms cultivate. Equally, peer-to-peer consensus algorithms can directly match borrowers to those with money, without requiring a bank to mediate.

“The biggest mistake financial services CIOs make is putting too much focus on technology,” said Mr. Redshaw. “They should push their organizations for a more coherent response to digital business — it’s important to set the digital vision and destination first, then think about how to lead an organization there.”

According to Gartner, of the 20 percent of traditional firms that will remain as winners, three types will flourish:

- Power-law firms: Companies that own a digital platform will use its scale, low-cost infrastructure and the customer information it generates to create new services and enter new markets. Very few (5 percent) of these winning heritage institutions have the ability to become power-law firms.

- Fintechs: Individual companies or pure-play/neobank subsidiaries will disaggregate traditional financial services in discrete product areas. They will participate in digital platforms, but will not own them. Less than 15 percent of the winning group of traditional firms can convert themselves into or successfully spin off fintechs.

- Long-tail firms: The dramatically lower costs enabled by digital platforms will allow some traditional providers to act as service brokers. This is likely for large populations of poor and working-class people around the world that were not profitable customers previously. Simultaneously, they can act as concierge providers of bundled offerings to high-net-worth individuals. Around 80 percent of winning traditional financial services providers can become long-tail firms.

The speed of digital transformation in financial services partly depends on regulation, as well as customer demographics and behaviors, which will vary from country to country. In some nations, conservative regulations will inhibit innovation, while other countries, such as Australia, Brazil, China, India and the U.K., will use regulation to speed transformation.

Comentarii



Adauga un comentariu
Nume *:

E-mail *:
(nu se afiseaza pe site)
Subiect:
*
Comentariu:

Turing Number

Tastati codul din imagine (doar cifre)  



Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH



Charles Michel, President of the European Council: More than half a trillion Euros are now available to shield European Union countries, workers and businesses

Charles Michel, President of the European Council: "The agreement of the Eurogroup is a significant breakthrough. More than half a trillion Euros are now available to shield European Union countries, workers and businesses. With this unparalleled package we shoulder the burden of the crisis together. This compromise is aimed at quick targeted relief." The deal of the Finance Ministers focuses on support for Europe´s economies. The European Stability Mechanism will provide pandemic crisis support, in the form of precautionary credit lines. Second, a temporary solidarity instrument should be established to provide Union´s loans granted on favourable terms to EU Member States with a view to protecting workers and jobs in the current crisis. And detalii

Commission approves market conform recapitalisation of Romanian CEC Bank

Commission approves market conform recapitalisation of Romanian CEC Bank (press release) Brussels, 29 October 2019 The European Commission has found Romania´s plans to inject €200 million of capital in fully state-owned CEC Bank to be free of any State detalii

Agreement between National Bank of Greece and Export-Import Bank of Romania for the sale of Banca Romaneasca

National Bank of Greece (“NBG”) announces the signing of a definitive agreement with ExportImport Bank of Romania (“EximBank”) for the sale of its 99.28% stake in Banca Romaneasca (“BROM”). The Transaction is expected to increase NBG’s CET1 ratio detalii

Banca Transilvania financial results as at December 31, 2018

BT’s Preliminary Financial Results as at December 31, 2018 (press release) Banca Transilvania, the largest lender of the local economy in 2018: customer support twinned by the Bancpost integration ●196,000 loans to companies and individual detalii

Ultimele Comentarii

  • Dragoste

    Buna ziua, eu sunt Allison Howarts Dupa ce am fost în rela?ie cu Anderson ani de zile, s-a ... detalii

  • Dragoste

    Buna ziua, eu sunt Allison Howarts Dupa ce am fost în rela?ie cu Anderson ani de zile, s-a ... detalii

  • Dragoste

    Buna ziua, eu sunt Allison Howarts Dupa ce am fost în rela?ie cu Anderson ani de zile, s-a ... detalii

  • Dragoste

    Buna ziua, eu sunt Allison Howarts Dupa ce am fost în rela?ie cu Anderson ani de zile, s-a ... detalii

  • Dragoste

    Buna ziua, eu sunt Allison Howarts Dupa ce am fost în rela?ie cu Anderson ani de zile, s-a ... detalii