Capgemini, LinkedIn in collaboration with Efma recently published the World Fintech Report 2018 after last year’s debut. In a live-streamed event on three locations industry experts shared their views in a faceoff format. This time I’ll highlight some of the recommendations for both FinTechs and ‘traditional’ financial services institutions like banks and insurers. Collaboration is key.
Don’t Be Left Behind
While there is no surefire future-proofing strategy, there are some steps that help firms to minimize the threat of being left behind.
- Empathize with customers
- Build and maintain customer trust
- Keep it simple (for customers)
- Strive for operational excellence
- Invest in digital capabilities
- Align customer and business goals
- Adapt agile principles
- Nurture the right culture and talent.
Executives and customer journey experts must put themselves in their customers’ shoes to accurately assess what they are thinking and what they want. Customers really don’t give a ** about your internal processes, IT landscape, ongoing reorganizations, etcetera. Service levels, pain points, complaints about process inefficiency, stupid questions and lack of follow-up are red flags to act upon. Strategies for operational excellence and digitization still are valid. Simplicity rules. While many financial firms nowadays use some form of an Agile framework for their development and maintenance processes, collaboration with FinTechs can help traditional Financial Services firms boost agility and responsiveness to changing customer expectations. A culture of customer-centricity and innovation is required to survive.
If you can’t beat them join them
FinTechs need Financial Services firms to scale up and service a larger customer base. Traditional firms’ general lack of agility and perceived unwillingness to partner have been the main impediments for FinTechs attempting to find a suitable partner. Other hurdles are cultural fit, jurisdiction-specific regulatory burden, IT compatibility and product/service cannibalism.
Again, for customers, the collaboration or partnerships don’t have to be explicit. Most FinTechs prefer white-label solutions, integrated in-house solutions, full outsourcing, and leverage of APIs as engagement models.
From a FinTech perspective, key success factors for collaboration are:
- CxO level leadership buy-in
- Common objectives
- Common vision
- IT compatibility between traditional firm’s legacy systems and FinTechs’ IT systems
- Cultural compatibility
There’s more in the World FinTech Report 2018
Explore the World FinTech Report 2018 and get detailed information regarding:
- How FinTechs are revitalizing the financial services customer journey and influencing customer expectations, thus increasing the pressure on traditional firms.
- The potential for symbiotic relationships between FinTechs and traditional financial institutions.
- Why finding the right partners is essential and approaches and engagement models traditional firms and FinTechs can adopt for a successful collaboration.
- Why BigTechs could be the next big disruptors in the Financial Services industry.
You’re welcome to one of the upcoming events as well:
- 14 March World FinTech Report 2018 presentation in Brussels.
- 21 March World FinTech Report 2018 presentation in Madrid.
- 12-13 April Efma hosts a Bank + FinTech conference in New York.