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Fintech is coming for banks, one service at a time
“Every single aspect will be taken over by fintech,” CEO of crypto asset service provider warns conventional lenders, adding that tech firms could provide more granular banking products.
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Bank-owned skyscrapers are pictured in Jakarta on Aug. 27, 2021. (AFP/Bay Ismoyo)
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s fintech providers continue to make headway in services traditionally offered by banks, the latter are urged to adapt and embrace digitalization in the financial services industry.
Bambang Moerwato, regional vice president of software firm SAP said on Wednesday that the banking business had changed relatively little over the past few decades.
Meanwhile, many surveys reflected increasing demand from customers for more personalized services, he noted, which implied that financial institutions needed to change in accordance with customer needs.
However, many banks were not fully able to do so, he contended, as they aimed to serve as many kinds of customers as possible, while fintech firms had been providing customized services based on their expertise in particular areas.
“There [have been] hardly any significant changes in the banking business model until now. They need to change, if they want to be more invincible,” Bambang told reporters at the Financial Industry Editors’ Forum 2022 hosted by IBM at the Marina Bay Sands Expo and Convention Centre in Singapore.
He added: “fintech, in my [view], will unbundle the actual banking system”.
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