The Nexttech Revolution in the Financial Services Sector

The financial services is in the process of major disruption - where those that will survive will need to shift from being  product-centric to customer-centric. 

Maybe a solution is for them to  partner with data-centric tech firms whose core focus is on the customer.

These data-centric tech firms (DCTF) lack the legacy, invest in new technologies, and understand how best to manipulate data to deliver positive commercial outcomes for the customer.

They can hold and process volumes of data far more efficiently than financial institutions, with this efficiency increasing exponentially - faster than Moore’s law!

The banks have something that DCTFs want -  strong existing customer bases, which trust them to safely and securely hold their money and their most sensitive data. 

A financial institution working with a DCTF to combine elements of the traditional supply chain into a single integrated delivery platform will be deadly and potentially solve a wicked problem! 

Let’s create the “Nexttech  Financial Services  Forum” which will explore strategies to connect DCTFs with financial institutions and help negotiate this positive change - to  shift them from a product-centric to a customer-centric delivery model, and investigate new ways to provide personalized services for clients and customers.

What banks need to do to add massive value 

• Have a mindset of collaboration and Embrace partnership. Hyperscales have the funding, scale and capacity to support and accelerate the transformation of legacy businesses. They focus on a frictionless customer experiences

• Educate senior leadership. The financial institutions’ C-suite leaders must develop an understanding of new and evolving technologies, such as cloud. Only with this clarity of knowledge around critical technologies can leaders best evaluate the opportunities that these technologies present, their potential impacts to business and operating models, and the best strategic direction for the organization.
• Consider the impacts and implications of new technologies on the business model, the financial institutions will have to disrupt and transform - this will be done through collaboration with hyperscales. Maybe create financial services and technology forums - where they cam intersect and explore  new services, products and markets, empowered by access to the right data and APIs and a focus on the customer 
• Improve the storage of legacy data by working with technology firms or collaborating with fintech cloud providers. Maybe Blockchain solutions to avoid holding data? 

Inspired by a KPMG article https://home.kpmg/xx/en/home/insights/2018/02/tech-giants-in-financial-services-fs.htmlwritten by Anton Ruddenklau - global co-leader of fintech at KPMG