Financial technology is one of the biggest disrupters of our financial institutions. Whether it is to provide new ways to enhance customer experience, improve service delivery cost effectiveness, or improve the efficiency of background functions, numerous financial technology solutions are rapidly reshaping the value chain. Given its unique strategic vision and business objectives, the challenge for many financial institutions is to determine the best way to adopt the necessary measures of financial technology.
In order to better understand the company how to develop to meet the new digital model, we have 168 financial institutions from 36 countries surveyed, and interviewed leading executives of financial institutions and financial services professionals, to understand how the company defined in extreme financial technology changing.
What we have learned is that there is no best way to deal with financial technology. Leading financial institutions are looking for ways to leverage financial technology – from collaboration and procurement to procurement and direct investment. However, one of the best practices to support the success of financial technology is to define a key financial technology strategy, including:
Have a deep understanding of current business operation.
Awareness and early identification of changes in signals.
Willing to change and understand cultural barriers.
Consistency between business objectives and financial technical approaches.
A wide range of innovative activities, including incremental improvements and transformative changes.
Integrated financial technology
Even with a clear strategy, it is not easy to integrate financial technology successfully into an organization. Financial institutions are working on a continuum of financial technology – some companies are taking defensive measures to protect what they already have. Others are attacking, hoping to grow. Looking forward to the future is a complicated process in the period of large-scale transformation. Leading organizations are starting to raise four key questions:
What would we call it?
What role do we want to play in our customers’ lives?
Where should we play?
How do we win the game?
Answering these questions may have a significant impact on the organization’s business model and culture, so they may find new financial technology capabilities to support their aspirations.
The road ahead
Financial technology innovation is still a competition – there are no clear winners yet. Given the customer relationship, the source of funding and reputation, on-the-job employees have a great opportunity to gain value from financial technology. Although most organizations do not consider themselves to be leaders in this field, there are a number of success stories in the leading organizations Shared throughout the report.
At the speed of the industry, financial products and services and the technological infrastructure behind them will look very different in a decade. Financial institutions take the time to identify their financial technology strategies and align them with their vision and business objectives, which will be most conducive to the future of financial services.
We hope that you find this report a useful resource for guiding your own organization. If you would like to discuss our findings in more detail, or know what steps you can take to get the most out of the fintech opportunities, please contact your local KPMG consultant.