Global banks must start ‘thinking big’ to meet evolving customer demands in the digital age, revamping core systems and establishing full competency in API-based software development, according to Capgemini‘s 2016 edition of its annual World Banking Report.
“The inability of banks to innovate leaves the door wide open for fintech providers to attract new customers,” observed Capgemini Head of Global Banking and Financial Services Anirban Bose. “There is opportunity for banks to begin working collaboratively with these companies, but they must formulate a rapid response plan to do so before the swiftly evolving bank environment outpaces their window for change.”
In order to respond to the threat these companies pose to more traditional models, nearly two-thirds of bank executives say they need to view fintech firms as partners, with the majority of bank development strategies taking the form of collaboration (46%) and investment (44%), Less than one-fifth (18%) say they plan to acquire fintech firms or their technology. Stay tuned.