Masterclass description: The banking sector may have escaped the storm that has engulfed it since 2008 but it has found itself in another. However unlike the first that will be best remembered for various scandals, the storm we are now in is one of technological disruption and the main benefactor will be the consumer.
Based on technological advances in other areas of their lives, consumers are expecting the same developments from banking. The consumer is demanding a faster service, with more convenience, better integration, greater insights, at a lower cost and with enhanced security. Not an easy set of demands for any company but they are responding.
The majority of consumers have not yet benefited from the new services that have hit the market in recent years. How many consumers have obtained a loan based on a social media credit score, made a transfer using a cryptocurrency or mobile, raised funds from the crowd or visualised their spending? A relatively small proportion. But since 2008, the funding raised by Fin Tech companies has more than tripled to almost $3bn in 2013 as companies respond to the demands. It’s not just startups and investors who have noticed an opportunity with several major banks setting up VC funds, incubators or dedicated departments to be part of the storm rather than a spectator.
In this session, we’ll be hearing more about the industry trends and learn what it’s like for a disruptor in the space and for an incumbent to innovate.