Technology’s influence on the banking sector is becoming increasingly important. Despite this, commercial banks are far behind retail banks in terms of innovation, way of working and digitalisation. The clock is ticking; if the sector doesn’t change it’s ways, choosing to remain process-driven rather than client-driven, the bank will turn itself into a burning platform.
Even though traditional players are still dominating the banking sector, the world is changing at a faster pace than ever. The new payment law (PSD2) and changes in the banking sector have opened the market for ‘new’ players. Google starts to develop payment initiatives and challenger banks are winning market shares.
Fintechs are taking over the profitable parts of the operation. If this trend continues, commercial banks will have to be careful that they do not become merely a utility provider.