"Now we will see the possibility not necessarily the probability of what we call a 'Kodak moment', where increasingly banks become irrelevant to their customers," ... "Banks can avoid that, but they have to act now, and what they really need to do is think about innovation, but also transformation, doing something radically different."
Financial Services' "Kodak Moment"
Financial technology, also known as FinTech, is an industry comprised of nimble companies that use new technology and innovation to deliver financial products historically offered by traditional financial institutions and intermediaries. Initially, banks and other incumbent financial services institutions viewed FinTechs as competition, as they created and sold new innovative services in areas such as lending, personal finance, payments, wealth management, and even traditional deposits. That view is evolving. Incumbent financial institutions increasingly realize that the pace of technological change and customer expectations requires the advanced capabilities, improved scale and resilience of FinTechs. And the perspective of FinTechs has also changed, as they admit the need for established bank customer bases.
Coopetition to Accelerate Your Digital Advantage
According to PwC, 82% of established institutions expect to increase FinTech partnerships in the next three to five years, and 88% of incumbents are increasingly concerned they are losing revenue to innovators. Partnering with nimble, digitally native financial start-ups who aren't weighed down with legacy systems will enable traditional financial institutions to unlock the full potential of the digital economy and more rapidly integrate artificial intelligence (AI), robotic process automation (RPA), and low-code into their technology ecosystems. Embracing these partnerships and selecting a platform approach to integrate into the digital fabric is the best way to lessen the burden of legacy technology since 43% of banks core systems are still built on low-code platform that is easily adapted to fit customers changing needs and can bend as requirements change, or new regulations are enacted, while interacting with data and systems that could be anywhere. Through continued adoption of automation and innovative technology, financial institutions can drive sustainable, effective change, and most importantly, customer trust in the financial market and their organization.
Save the Dates
We look forward to seeing you this fall. The Appian Financial Services team will be at FinovateFall at the Marriott Marquis Times Square, New York, NY on September 24-26. Please visit us at booth #8 and don't miss Sibos at the International Convention Centre (ICC) from October 22-25. Please schedule a meeting with our financial services executives, visit our booth (K-10), and don't miss our presentation on Wednesday, 24 October at 12:15 in open theatre #2 on level four of the convention centre.
Visit our Appian Financial Services Resource Center to learn more about our low-code digital platform.
