Fintech vs Banks: can banking industry still respond to Fintech disruptors?
As fintechs continue expanding and attracting new customers from traditional banking, many say that now is the time for conventional financial institutions to respond. What fintechs were able to do already is to focus on the concept of simplicity, offer one type of product or service and do it very very well.
Traditional banks often try to cover so many various problems, that they cannot really become truly great at anything. So the biggest advice for banking industry trying to fight with fintech disruptors is to simplify their business and narrow the scope. Finding your niche today is extremely important, you must find what you are really good at rather than be a generalist, in order to keep your business alive.
Apart from that, fintechs try to earn their clients’ trust by offering a better customer service than banks as they see enhanced customer experience as their key competitive advantage. They also often have much more creative, fresh branding ideas, which are more attractive to customers, and provide better pricing offers.
How can the banks fight back? Well, the best advice is to try doing something a bit different. Banks should move from old and confusing patterns, manual and institutionalised processes, bureaucracy and everything else that has been the status quo of banking for so many years.
The big advantages banks already have are the knowledge, experience and vast financial resources. They just need to improve their efficiency, customer service, be faster, more transparent and customer oriented. How to achieve that? Embrace being in touch with your customers. If you have opportunities to talk with your clients and get their feedback, use it. Spend time with your clients, find out about their needs. Invest in the right talent, who will be able to transform your services to the next level and achieve the best that digital transformation has to offer.