How established players in financial services, namely those institutions referred to as big banks, may best face the widening assault on their long held areas of business and preserve margin accretive revenue streams is being examined more closely as fintech firms continue to chip away at their customer base. In the case of this article, the author advocates a “can’t beat them, join them” approach for the larger FI’s.
“Smart ones will partner, buy skills and tech they need or partner with someone who does it well so they can bring it to customers… that’s because the brands [already in the market] have distribution footprints, existing customers and brand equity and trust in the market, which attracts customers,” she said. (Alyson Clarke)
Mercator Advisory Group recognizes the role fintech firms are playing across the retail banking and the payment sector. Big banks are increasingly be asked to act as the curators of service offerings and solutions delivered by outside entities, and the ones more will to take a less controlling role will be better positioned to thrive.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group
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