Future of banks may be different than what you thought. Since its invention and centuries of development, it has become one of the major sectors and industries of the world economy. From 1995 onward the world entered the digital economy and from the recent entire transit toward the fourth industrial revolution (4IR) industry 4.0.
Beside few of the proactive and visionary bank players, they did adapt for the changing world, and make their business model more toward digital. While the rest just follow what the rest is doing.
You will be surprised to see how reactive in the area like fintech and mobile wallet or crypto, how banking reacts to them passively and conservatively. They remain comfortable to stay in their own old business model.
The mentality is very dangerous, see what happened to Nokia in the telecommunication sector, Switzerland made high end traditional watches, all the camera producers in battle against smartphones.
More and more different sector players is enter into offer much better innovative products and services, where banking players despite got the first mover advantage, they are not able to see the future in much more clearer picture compare to those who can see it and now mobilizing resources to making innovative products to enter the market for the future.
When it comes to the market, it matters who can provide the value and function, no one is capable of monopoly unless they can produce what the market needs value and function. More and more non banking is providing attractive offers to convert market real cash money into their platform specific currency that can only be used on their running platform, that is one form of monopoly, as it becomes a unique currency alike that can be used on the specific platform. Whether from the gaming platform and inside sell virtual objects and services, to marketplace platforms allow you to buy a lot of things, and even parking applications attempt to sell you cashless where you need to top up money in their respective platform. Giant global companies like Apple got the Apple Pay credit card, where it offers members an exclusive rate to use it, in return, they know precisely each of the individual what they buy, frequency, and aggregate them into very meaningful market intelligence.
If you know what the market is buying and you can predict what is next and likely to be bought, you are a few steps before your competitors to act on those opportunities.
Despite all banks offering mobile applications, some do it very reactively, some are very proactive that offer cross sell and up sell others financial services. If you are the users, which will you be more willing to use? In the generation for the exact sectors and industry definition is blur due to modern technology allowing to break the enter barriers, we are expecting for some who know how to use the technology and start to offer what the market needed products and lead the rest of traditional and passive banks.
Just like other sectors and industry, innovation and Inertia continue to be a strategic key priority the top management needs to handle and can not be dedicated to. The history is full of real cases of what happens if you miss to catch the next wave of big things, regardless of how global dominated you are.
If you notice the future of banks, may or may not be the current traditional banks? The function and value can be delivered by other cross-sectors and industry players who provide better fintech products to meet the needs of the users.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
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