The world is moving toward a digital economy for decades now, a lot of change is underway. Whether as existing banking sector players or new entrants unlocked by the digital economy to offer digital bank solutions, we can see for what is going right now.
From the case for stopping the Jack Ma Ant’s mega IPO, we see a u-turn for some countries where fintech is now questioned for using it for warping the high interest credit business by the regulator.
Digital transformation (DT) opens up a lot of new potential business and innovation that challenges traditional bank players who are conservative and never bold enough to make the market move by making use of the new technology innovation to make certain businesses become potential and accelerated growth. Then after they saw the new entrants pose a threat to their existing business, they also started mobilising resources to play catch up.
We also notice for mobile wallet, mobile payment they start to be operated by more non-banking players, where banks remain conservative for it. The same for the bitcoin invented for certain years from now by using blockchain technology. Credit card, debit card and then global payment like Paypal and we expect more and more non-banking players will continue to roll out their services and take the share from the traditional and conservative bankers.
The same rule for non such products can continue excellence for the 10 years. It applied to the company that is running as well. From the 1980s Tom Peter In search for the excellence studies, the majority of the company has fallen within the 10 years based on the earlier criteria. World is changing, but the company, in particular the mastermind, the founder and the new succession top management, may not possess what is needed to continue to outperform the rest of the company. This is why it does not surprise, after a period of time, we will see the new challenges invent the new business model that is killing off existing and dated market leaders. Just saw how Apple invented the smartphone 10 years back, and it killed off traditional cell phone makers completely, if they are not adapted for the changing new market needs. Same go for the smartphone killing off the traditional watch market. Smartphones kill off mass consumer points and shoot cameras. And we can expect digital banks will kill off traditional banks that still depend on their customer to go visit their bank office or branch to get things done for their banking requirements.
We are now living in the world, 24x7x365 never stopping, the internet connects everyone on the planet under single communication networks. We all access information on demand as per needed basis. As such, when the top and high management for once very successful bankers stay where they are, we can imagine for the new entrants an aggressive player will eventually replace those traditional and conservative players. If they are yet to be awake from the digital economy reality, where the border for the sector is now digital click away for most of the user mind.
It was the same, as the world moving toward digital shopping from mobile phone, website and tablet device. It is those few platforms that capture the majority of the world shopping and deliver to home. If you can not capture and offer a good attractive offer or adapt for the changing market reality, for sure, the next generation of banks, you most likely will not be in the list.
E-SPIN Group in the business of enterprise ICT solutions consulting, supply, project management and maintenance support for multinational corporations and government agencies. Feel free to contact E-SPIN for your digital transformation initiative and requirements.
