FinTech is an umbrella definition of sectorial innovations and market support services in the technology space for financial services. Very much the same as what eBusiness was back in the 90s and Banking Technology in the 2000s.
This is certainly not the first time that the banking sector has to deal with a wave of innovations. Previously we had ATMs, videotex, electronic payments and internet banking. And although not all of these innovations have been successful, they have accumulatively changed the face of banking.
Technological innovations have historically followed the “hype cycle” and I expect a small number of new banking models to co-exists. However, we do not see FinTech as a threat to incumbent banks, but rather as a driving force behind modernization and digitization to create Better Banks. Banks that offer a more accessible and tailored banking service. Banks with more improved and efficient processes. Banks that will have a positive impact on financial stability of economies.
In order to achieve this, we will assess today’s market, with it’s risks and opportunities and the impact they have on the bank’s processes and governance to become a Better Bank.