Finance Monthly April 2020 Edition

believes in rebundling what banks already offer by integrating the revised products “into new environments where they are a more natural fit for the customer”. PLATFORMS AND PARTNERSHIPS What would that new environment be? Perhaps borrowing from disruptors outside of the banking business could be valuable. Airbnb and Uber have utilised product platforming and championed connection over control. This scalable model connects consumers directly to the services they need. Whether the banks create their own platforms or share others is still to be seen, but established banks are in a strong position to exploit this opportunity, especially through partnerships; whether this is collaboration and partnership with developers or with other businesses in other sectors. Taking advantage of other’s expertise, technology and insight may well help to transform the traditional bank offerings. GIFT OF DISRUPTION Disruptors have found more than 2.5 million customers and USD $1 billion in funding since 2014, however, they all still remain outsiders within the global economy. The greatest impact they have had on big banks is to kick them into action, to reconsider what they offer the customer and - perhaps more than anything - how they engage with the customer. This is not to say that they are not a threat, because they are. However, big banks must shift their perspective and not consider their future to be threatened, but look to the promise and potential of tomorrow instead. 88% of banks are still concerned they’ll lose revenue to innovators share of current accounts Whilst digital banking disruption continues to grow, a recent study by the Competition and Markets Authority (CMA) found that Barclays, Lloyds Banking Group, HSBC and The Royal Bank of Scotland Group have all retained a 70% DATA is the oxygen of the developing financial system FINANCIAL INNOVATION & FINTECH - DISRUPTORS 23 www.finance-monthly.com