At Anthemis Group, we’re focused on driving and shaping the evolution of financial services for the digital age. In order for this to happen, we believe incumbent firms and new financial technology companies need rethink how they work together to achieve success for both themselves and their clients. Working with our partners Santander and Oliver Wyman, we sought out to explore this issue further, and to understand where the greatest pockets of opportunity lie for both incumbents and startups to work together towards a new, digitally-native paradigm for financial services.
“Fintech 2.0: rebooting financial services” is a call to action for banks, financial institutions and fintech companies to undertake a fundamental ‘reboot’ of the core processes, systems and infrastructure of the financial services industry. While previous generations worked outside or on the fringes of the industry, fintech businesses and banks now need to collaborate in order to benefit from product distribution at scale, established relationships of trust with customers, and extensive compliance and regulation capabilities.
Some key themes we highlighted included:
- Unlocking the Internet of Things (IoT)
- While compelling uses of this technology have not yet emerged within financial services, we see untapped opportunities in asset financing, risk management and pricing, understanding customer needs and streamlining contractual processes.
- Harnessing the power of data
- Through fintech collaboration, banks will be able to harness greater opportunities through data analyses, offering insight on value metrics such as customer transaction behaviour, viewing and listening behavior, real-time satisfaction and location preferences.
- Streamlining ledgers
- Distributed ledger technology brings a number of attractive features which include; irrevocable transaction records, execution accuracy, and improved verification. Speeding up and streamlining the transaction process will enable distributed ledger technology to become a more widely used cost saving tool.
- Eliminating friction
- By adopting digitally native practices, banks will reduce costs and time in everyday processes to achieve huge institutional savings, while benefiting the end user: the customer.
To read the full paper, click here.