Note from the CEO: The first wave of attacks are compete and new battles are just beginning. New fintech firms have shaken the banking sector with innovative ways to enhance customer experience and cut costs. Now, new “attacks” that focus on particular products and reaction to the ‘disruptive’ changes that have been made. Cool new word; “platformification”. It’s not obscene and spell check won’t fix it. Cool.
A new report form McKinsey brings to light several new aspects that traditional banking and fintech firms need to understand as they wade into the new financial services environment. Identifying seven specific areas that the new financial services sector will open up to the existing (new and old) banking structure, McKinsey makes a great case to expand the overall financial environment.
“A report from McKinsey argues that there are seven critical aspects of the new financial services environment that must be understood by traditional banking and fintech firms.
For the past decade, new fintech providers have focused on providing an enhanced consumer experience around a rather narrow set of financial products and services. This has impacted traditional banking organizational planning, innovation and even investments in technology.
As the banking and fintech industries begin to merge through consolidation and collaboration, the focus will move beyond simply providing better payment, lending, money transfer and digital engagement experiences, extending to the entire financial services ecosystem according to a report from McKinsey. These changes will be supported by new regulations, demands from increasingly digital consumers, and a new ‘patformification”’perspective as introduced by Ron Shevlin.
According to McKinsey, there are seven critical aspects of the new financial services environment that must be understood by both traditional and new financial services providers.”