Banks open innovation activities in Southeast Asia
Recently, I have been invited to speak at the Fintech meetup in Ho Chi Minh City. The theme of the event was “Bankers and Fintech Startups”, a perfect ground to present the findings of our research on banks open innovation and corporate venturing activities in Southeast Asia.
Open innovation, and more specifically outside-in innovation, refers to corporate practices of including outside stakeholders in their innovation processes. An increasing number of industries is coming to realize that innovation is not confined within their organization boundaries and thanks to accessible knowledge and capitals, outside players could pose serious threats to their businesses.
Within the banking industry, emerging fintech companies are changing the way consumers expect to be able to receive and consume banking and financial services. Quoting Bill Gates, we are directed in a future where “we need banking, but we don’t need banks anymore”.
Bankers started to worry about the situation as well. Antony Jenkins, who until July 2015 was CEO of Barclays, warned in a speech that as much as half of banking jobs could be replaced by apps and algorithms over the next 10 years. Francisco Gonzales, Chairman and CEO of BBVA, warned that up to half of the world’s banks will disappear over the next few years.