Bank and fintech for transformation of financial services: what to keep and what is changing in the industry

Technology in banking has always had the power to affect the fundamentals of business, such as information and risk analysis, distribution, monitoring, and processing. The relationship between technology and banking is, however, quite different to how it used to be, predominantly due to stronger interdependencies, both technological as well as strategic. Today’s digital technologies have the power to improve efficiency and effectiveness in services, as well as exerting increasing influence on banks’ products and delivery methods, and increasingly on strategies. Digitalization is changing the rules of the game in many industries, and this results in the emergence of complex and dynamic ecosystems for growth and innovation. The main forces shaping these changes have led the   financial services industry to reconsider the role of banking and   nance, more as an “enabler” for many other businesses and commercial initiatives than as a mere provider of products and services. This paper looks at how   financial services organizations are transforming themselves using the new technologies at their disposal and tries to determine what should be kept and what needs to change.