When it comes to user experience, Fintechs are pushing forward the banking experience.
“Its not by muscle, speed, or physical dexterity that great things are achieved, but by reflection, force of character, and judgment” – Marcus Tullius Cicero

I believe that when you delve into the past, you can grasp what the future will bear. Everything is cyclical, hence the importance to look back for the bread crumbs to find those clues which will make the difference in future decisions; allowing to select the best strategy to survive in the current competitive market environment. We have already witnessed that no organisation is too big too fail (well, maybe a few of the biggest banks, but you can count them in two hands).

Marcus Tullius Cicero is probably one of the greatest and wisest statesman to have ever lived, his advice is as good today as it was 2000 years ago. Following the scars of the 2008 financial crisis, technological development, a new generation of consumers and distaste with the current institutions; a new breed of bank has sprout, or it could even be called a new business concept in the financial sector. Unconditionally rattling the market, whilst breaking through all the glass ceilings which we thought could not be breached, albeit the root of the problem has always been within the industry itself.

These revolutionary pioneers have carefully reflected in their solution, diagnosing what were the problems of modern banks and the real needs of the new generation of customers. Shaping this banking solution in the form of a mobile application, rewarding users with what’s in the interest of the client and not the bank. For once, putting forth what really matters, which is you, me and all those users who have felt cheated, misunderstood and taken for a ride by the banking institution.

Nowadays, Fintechs take up 33% of revenue share in financial services. This hasn’t been achieved overnight, but the speed at which these new financial service providers have grown is staggering. Simply by offering more transparency, focusing on improving user experience and providing a cost effective solution. Be that as it may, banks have been watching from the back seat how this service approach works, the business model is monetized, but most importantly how these disruptors are poaching their clients from under their nose.

[...] banks have been watching from the back seat how this service approach works, the business model is monetized, but most importantly how these disruptors are poaching their clients from under their nose.

At the moment we have several Fintechs which are consolidated across various countries globally. Bestowing a base on which to grow, this second wave of growth will come through the agility and lean structures these Fintechs have created. Identifying those functionalities which really engage users and execute quick through proactive decision making to deliver the market what it really wants and at the speed of lightning. These added functionalities can come in many shapes and forms, however we can deduce that they will be related to cost savings, efficient spending and health; which are the greatest concerns for Millennia’s and Generation Y.

Now is when the banks are at a crossroads, they cannot sit and wait anymore motionless. They have the money, the resources and need to avoid the continuous investments in Fintechs; and start leveraging their platforms or mobile touch points to offer this next generation of consumer services to their users directly. Rather then waiting to see what and how Fintechs are improving user experience though additional functionalities, but be the ones to surprise the user with the next big thing which will have all consumers, customers and users talking about.

Once again, we believe banks are the followers and Fintechs the ones who set the pace, in an industry that banks have dominated for 1000’s of years. As we have already described previously, one way banks and Fintechs alike could offer the 2.0 version of banking; is understanding what consumers purchase down to brand level. This universe of data will give the customer journey, be the missing link between all the data sets banks and Fintechs posses. Identifying the most effective and precise targeting approach for banks and Fintechs, which will be good for Fintechs and banks but even better for users. This is the key, the options and functionalities users have.

Through reflection, force of character, and judgment as Cicero stated. Fintechs are taking the lead and conquering the banking industry bit by bit. Banks need to get their act together and emulate more often then not; their peers which are excelling in what banks have done for centuries. The future will belong to the brave.