Increasing levels of digitization is changing client expectations of (financial) services. This is the case for B2C as well as B2B market segments. Digital offerings must be transparent, holistic, user-friendly and targeted to the customer's needs. A strategy for incumbents to test digital offerings is to cooperate with FinTech companies.
Agile organisational structure
It is increasingly difficult to manage a legacy IT infrastructure in an ever-changing environment where agility is required. Possible technical solutions range from the usage of intelligent interfaces to the replacement of complete systems. The transformation into a future-proof and agile structure requires changes that go beyond the technical level and involves an alteration of mindset.
Regulatory requirements grow both in complexity and scope. It is increasingly difficult to manage an established IT infrastructure in an ever-changing market where profit margins must sustain increasing pressure from the current negative interest rates. It is therefore essential to analyse the current structures with respect to their cost-effectiveness and performance. Here, new technologies and service providers allow for new approaches. For example how to leverage modern RegTech software to comply with regulatory requirements and increase efficiency?
New technologies and business models
It is essential to not only evaluate new technologies and innovative business models, but to also experiment with and, where applicable, utilize them. In this context, several questions arise: where is the real innovation and what is hype? How do you grow respective expertise in your organization? How do you integrate new approaches in the existing business model and IT infrastructure? Where do you implement in-house and where do you cooperate with an external provider?
Insurgents must manage and comply with a diverse set of requirements. FinTech startups often have to do this with a limited budget and resources and within a short period of time. Some of the requirements are not directly related to their core competencies or require specific expertise. Furthermore, a collaboration with incumbents is often sought by FinTech start-ups and therefore it is necessary to integrate the service into existing IT infrastructures, and, where required, to customize it.