There are a lot of people who believe that Fintech start-ups are the source of disruption. There is also a group of people that they will say that they are more of a distraction.
But if you actually think about it, both sides are correct since the underlying market mechanism behind most of this new fintech terminology avalanche, have as a result to be very profound, so the “disruption” is often more of a “distraction”, with this distraction working to the advantage of the new market entrants. Here are the five biggest distractions created in the new financial marketplace: 1. It’s All About the Technology Bankers do not need to deeply understand the underlying technology to realize that the original rules of business remain the same. The banking industry needs creative and talented people who can synchronize new technology with banking’s business goals. 2. Consumers are Flocking to Fintechs Even though that the fintech marketplace is full of monoliners, the majority of them lack a full range of financial services and even more lack scale. 3. Traditional Banks Can’t React Quickly The traditional banks have old, slow and incompatible legacy systems and overly complicated manual and paper-based processes. The existing system has been up and running for over three decades in many cases and it is impossible to shut things down and start over. 4. Digital Banking Must be 100% ‘New’ New digital banks are keen to deny anything and everything that may remind consumers of old school banking. Why rebrand a digital version of an established bank when you can simply rebrand the experience Trying to start from scratch is a distraction for a traditional bank. Use the foundation in place and improve the digital experience. 5. Social Media Yes, social media is a powerful tool for handling service issues or reinforcing marketing and banding initiatives but in the order of prioritization, social media is one of the best examples of a distraction being mistaken for an opportunity in disruption.