How are industries reassessing their business models to remain competitive and relevant in the shifting digital marketplace?
Technology solutions continue to reveal themselves as a means to accelerate the efficiency of consumer experiences, and industries are constantly facing disruption. While adoption rates vary between industries and their ability to reconstruct their business model, all industries are, in fact, managing disruption.
Some industries such as software or computer sciences were early adopters and hit the ground running with newfound innovation initiatives. The finance industry, on the other hand, has claimed itself a laggard in the adoption race. The industry as a whole is notoriously resistant to change and the abandonment of traditional models that have proven to fulfill old status quos. However, slowly, but surely the industry has welcomed changed.
The industry began it’s disruption journey by implementing small advancements such as mobile banking applications, mobile payment services, etc. Some may ask what has held back the industry? The fear of disruption has proven to be nothing, but a liability for finance. Despite the industry's gradual technological evolution, fintech has been the driving force for innovation in financial services. Fintech has welcomed disruption and transformative applications catered to the creation of added value on behalf of the end user.
These disruptors have been able to alleviate pain points that previously came as package deals along with traditional bank partnerships. Without being held hostage to legacy systems and processes, fintech companies have shared revolutionary solutions that offer full transparency, efficiency, and the streamlining of interactions. Playing this as an advantage, many fintech startups have scaled dramatically and are now leading market competitors. The agile companies have more leighway to fix old infrastructure that formerly served as the foundation for financial practices.
With the introduction of new game changing applications and services such as machine learning, AI, blockchain, and crypto replacing the standard for the consumer experience, the fintech industry shows no sign of slowing. This begs the question, where does this leave legacy financial institutions and finance providers?