Banks always wanted to become like Fintechs in terms of speed of action as well as market attractiveness (coolness factor!!!). Many bankers wanted to join Fintechs for learning digital. However, most banks have still managed to make zero digital revenues to date. The reasons for the same are not difficult to find:
- The abundance of profitable business from traditional branch-based sources
- Lack of Digital Strategy
- Lack of Digital Leadership at Board Level
- Lack of Digital Leadership at Management Level
- Lack of KPIs to monitor digital business growth
- Sub-optimal digital processes due to “abundance of resources already at work”
- Lack of skills within the teams to drive digital
But now, with the impact of Covid19, Banks will become like Fintech within 6 to 18 months:
As an impact of the BCP situation created by Covid-19, Banks now have a clear idea about:
– Which Revenue streams / Services are directly dependent on branches / human touch?
– What actions can be taken in the next 3 months to fully digitize the revenue stream from Marketing to Sales to Onboarding?
– Which services need to be moved to digital channels on an immediate basis?
– What are the missing skills in the team and how to bridge the gap?
In the next 18 months, the difference between Banks and Fintechs would be very little… Time to act is NOW as Digital is no longer an alternative… It is the only Option…