The fast growth of digital-only banks’ users and investors’ preference for mature startups offering a broader suite of financial products could be a cause of concern for traditional banks.
While digital native banks are able to innovate and roll out products without spending time and money solving the problems of the past, traditional banks are reaching a point of digital transformation fatigue. Incumbents find themselves in a permanent state of digital
transformation, anchored by their outdated legacy IT systems, and unable to keep up with consumer demands. What can banks learn from their digital counterparts in their race to digitisation? What can they do to compete with the rising digital challengers? This article explores three strategies that some of the world’s biggest banks are deploying to become more agile and consumer centric including:
1. Balancing front-end innovation with digitisation of the back end,
2. Developing subsidiary digital-only alternatives to serve niche markets, and
3. Exploring new avenues for growth through the creation of banking ecosystems.
