According to the recent Capgemini and Efma’s world banking report based on a global survey of retail banking customers in 32 countries an interesting finding is that “46% of banks plan to collaborate with FinTechs, but only 13% believe their core systems can handle the technical demands of partnerships. Many in the financial services industry believe partnering with FinTechs is the best way to avoid disruption."
In addition, in IBS journal a summary by Alex Hamilton on Chris Skinner’s speech delivered at a financial services conference stated that “The reason FinTech is “so hot” is down to the fact that it is moving financial operations from the boardroom to the internet. Banks have time to adapt but that time is running low. Customers don’t want to go to 100 different companies to get their lending, investments and payments controlled. They want to come to a name and an institution they know and recognise. Banks have to act to utilise that brand recognition.”
Reading through all these reports and reviews on the FinTech evolution and Digital Banking trend, it is becoming apparent that the financial services industry is moving to a new era, which started and successfully evolved with the P2P and marketplace lending. Moving online marketplaces to the next level, the Financial Services industry was "disrupted" with the challenger and online banks and to the new "digital bank" environment that can deliver one-stop service from retail and crowdfunding, corporate banking, wealth management to loan management, naming a few. Active parts of this challenging environment are Regulators and their efforts to support digital banking and FinTech evolution.
The key words for successful development of this trend include technology and user experience, as this is also apparent in the report’s findings. It is a collaborative effort of the financial institutions, FinTech providers, banking platforms and client service tools in a uniquely delivered environment to achieve maximum return and security over any channel, thus making ‘banking’ easy!
Combining the above with the recent research results from ComPeer that was conducted in UK wealth management firms showed that new technologies utilization in the investment management domain is expected to increase.