Disruption hasn’t happened in financial services yet; the doomsday scenario for incumbents painted by high flying FinTech startup CEO’s hasn’t materialized. But don’t be fooled into complacency. Enormous challenges loom ahead.
Disruption is one extreme end of the change spectrum, with status quo being the other end. In between those extremes lie many stages, colors and nature of change, which may not be readily visible, but connecting the dots reveals a pattern. And the pattern is deeply disturbing for incumbent financial institutions. Transparency and competition are driving down fees while digital technology is helping customers switch providers more easily. Plug and play technology and niche startups are targeting narrow slices of the bundled financial offering, weakening the historical advantage of large financial institutions that aggregated services. Digital firms (FAANGs and others) are wedging themselves into the value chain between the customer and the financial institution, influencing customer decisions and carrying the relationship away from the institution. Manufacturers of financial products are losing ground to distributors, while digitization consolidates distributor relationships.
This special presentation will describe what’s changing in finance today, what has the last 5 years of frenzy around FinTech startups, disruption, and innovative technology really resulted in? What are the subtle changes happening?