Fintech Startups set Pace for Innovation
Banks are lagging behind in innovation. Often they think too short-term, not just about digitisation but also about customer loyalty. Rigid corporate structures and low geared implementation result in an overall slow development. This gives fintech startups the possibility to fill in free niche markets.
One example is real-time credit transfers, which are currently being hyped as the latest achievement of financial institutions. However, banks make their customers pay dearly for this “innovation” to cover their own capital expenditure as quickly as possible. What a “pity” that real-time transfers at the provider Paypal can be done free of charge for almost two decades already.
The change within the financial industry has not only been on the supply-side. Many fintech startups score above all with innovative user experience and a consumer-centric approach. Digital consumers are characterised by their desire for convenience, transparency and mobility. A recent report by PWC says:
They want to use banking services frictionless and online via desktop as well as via smartphone. And they expect a 24/7 customer support in case of any questions.
Another reason for banks to take the “competition” from the fintech industry seriously. At collectAI we look forward to successfully work together with banks like Hanseatic Bank.
More about this in the commentary by Nils Wischmeyer for the German business paper Süddeutsche Zeitung.