FinTech or just FinTalk?

There has been a lot of talk about the future viability of the banking industry because of the changing competitive landscape. Normally, when you bring up the potential demise of the banking industry, the first thing in people’s mind is Bitcoin and how it will someday rule the world of monetary transactions. However, while the FinTech companies had us all captivated and distracted, the “Big Tech” companies found their chance to enter the market. These are companies that do not have a focus in finance, but have created technologies that change the way people interact with their money. The strength of these companies is that they take the value proposition of the bank, and narrow it down to one core value that they can execute very well. Examples of these are budgeting apps like Mint, that have now become incredibly popular among millennials, and also Peer to Peer transferring platforms such as Tilt and Venmo.

Essentially, the core products and services of banks are not changing any time soon. It is unlikely that Canada is going to be changing to a cashless society within the next few years, no matter how much people pray to the Blockchain gods. The main concern right now for banks is the changing expectations for the consumer experience. An omnichannel experience is a must and personalization is critical, otherwise banks will not be able to hold on to their highly coveted millennials. Banks also have to “future-proof” themselves, in that they have to be able to match the output pace of the innovative tech companies in order to remain competitive. Overall, banks need to embrace innovation and make it a priority, otherwise they risk falling behind in the industry.

Explore Virtual Reality, Augmented Reality, Machine Learning, and just about anything that could potentially improve the customer experience

Capitalize on the Bank’s competitive advantage and their ability to offer all their core services in one place

And most importantly, even if you don’t see the use for it now exploring and understanding emerging technologies is key to understanding how they may impact your business in the future!