The global banking industry is undergoing a radical shift, from traditional processes to new business models. Driven by fierce competition from new entrants like the FinTechs, which have changed entirely the competitive landscape in financial services, as well as highly regulatory frameworks, compliance pressures and disruptive technologies, traditional institutions face the challenge of adapting to new ways of doing business or cease to exist. That being said, such a transition is not a matter of thriving in today’s landscape but of survival.
It is evident that traditional banks follow a rather slow pace in adopting digital transformation practices, which proves that the majority of the industry players find themselves in the early stages of the Innovation Life Cycle. However, by failing to respond promptly to the rising market demand, there is a risk of losing significant market share and becoming irrelevant to customers.
As a result, the financial institutions are called upon to face the biggest challenges of the banking industry, ranging amongst client trust, interoperability, increased competition and strict regulations.Read the article