When Fintechs first started appearing, early views were that their disruptive approach would result in some form of a zero-sum standoff with conventional banks. Yet that winner-takes-all forecast has yielded to the reality of a more collaborative future: the top ten US banks have committed more than $4 billion in disclosed funding across 81 FinTech deals since 2012.
But traditional banking models remain at risk. Consumer engagement with Fintechs is growing and it is widely expected that one of the big tech platforms like Google or Amazon will soon enter the market.
At the same time, technology continues to evolve at a blistering pace, as do consumer expectations. Today’s sophisticated customers demand an omnichannel banking experience where every product, service and transaction is contextualized to their unique financial needs.
Going forward then, the key to a bank’s success will be its ability to combine continuous technology innovation with an emphasis on delivering a personalized banking experience.
Achieving that in today’s climate of sustained disruption is no easy task. A combined market map recently compiled by CB Insights shows over 100 startups are leveraging AI to deliver solutions in everything from credit scoring, lending and compliance to personal finance, asset management and debt collection.
For traditional banks this should be both an exciting and worrying prospect. But as long as they embrace innovation and experimentation with new technologies, they have nothing to fear.
And these deals have been spread across the FinTech solutions portfolio, including asset management, alternative lending, personal financial management, etc., and the technology solutions portfolio, including blockchain, analytics, AI and RegTech.
The challenges and opportunities now appearing for traditional financial institutions is the central focus of Banking Disrupted 2018, the second edition of an exclusive thought leadership summit for the banking and capital markets industries.
The two-day event, organized by Silicon Valley Innovation Center in partnership with PRMIA, brings together banking leaders, Fintech innovators and technology pioneers. Understanding the digital future of finance will be at the top of the agenda, with Fintech entrepreneurs and thought leaders defining the impact of technologies like Blockchain and AI. They will also discuss global banking innovation case studies and share their vision for the future of consumer and commercial banking.