A few years ago, banks didn’t even consider fintech firms as a low-level threat, let alone a threat to their survival. Fast forward to today, and this sentiment has completely changed, with fintechs now being one of the largest threats to the traditional banking world. Fintech startups are finding opportunity in the smallest cracks of the system, raking in customers by the thousands with their impressive tech.
How Can Banks Remain Relevant in a World of Fintech Giants?
The banking sector has been around for a long time, proving its resilience by withstanding many economic disasters. However, with customer expectations changing, there is a need for banks to adopt a new approach if they want to stay relevant. Here are some ways for banks to find success in the age of the fintech boom:
There’s no doubt that banking in the future will need to look entirely different to what it is now. With the help of modern technology, banks need to step up their innovation efforts and add more value to their customers’ lives. Generation Z and Alpha consumers have grown up in an entirely new world, a digital one. They have become accustomed to easy access to almost anything they desire with one swipe of a finger on their smartphones. In order for the banking industry to survive and serve these generations and others to come, they will have to deliver innovative services.
“Traderoot understands the importance of innovation and the significant impact it can have, we’re proud to be assisting banks and other financial institutions with their innovation efforts,” says Brett Dungan, Director of Traderoot Africa
Collaboration is crucial for banking success in the future. Banks need to look at themselves in a new light, not just as a lone soldier. By collaborating with the more innovative startups in the banking sector, banks can lean on them for innovative ideas and new products to offer their clients.
Although collaboration within the industry is essential, there’s also even more opportunity to collaborate with other industries, with new ideas and perspectives. With collaboration comes new and attractive products that will likely entice both new and existing customers.
Investment in Startups
It’s no surprise, startups are in need of funding. So, naturally, another option is to invest in innovative startups with business models more suitable for the digital era. Many large banks have already increased their investment startups who are hungry for success.
“The survival and growth of banks and other traditional financial institutions over the coming years will be defined by how they innovate and serve their customers,” says Dungan.
Banks and other financial institutions can reach out to Traderoot for assistance with their innovation efforts. Traderoot would be proud to assist and be part of your innovation strategy. Reach out today and we can assist you with your innovation efforts.