The established order in financial services is increasingly under pressure as customer behavior is increasingly driven by usability and benefits of the services rather than by loyalty to the incumbent institutions.
Banking and insurance services will be needed for the foreseeable future. Yet the way they are consumed, as well as the organizations delivering these services underlay continuous change; Apple Pay, peer-to-peer lending, embedded finance, … only to name a few.
Increasing regulatory requirements and decreasing margins, as well as disruptors such as BigTechs, FinTechs and InsurTechs further challenge the institutions at their core. This demands from traditional financial institutions a new flexibility and speed to adapt, both on the process and technology maturity, as well as on the business, cultural and governance perspective, to remain competitive, secure the client and revenue base and at the same time reduce costs.
The speed of change is difficult to foresee; in analogy to other industries, it is however fair to anticipate an exponential evolution of the disruption. The challenge is to be prepared; the art is to find the right path between being a laggard and a pioneer.