Overview of The World Fintech Report 2020 by Capgemini (Infographic)

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Cap Gemini released their annual Fintech Report last week, and in this post i capture the key themes and share the pretty cool infographic. The title, BigTechs and Challenger Banks are here to stay – Can incumbent banks still thrive, is pretty intriguing. Intriguing because the title alone establishes:

  • BigTech is here (in the financial services sector)
  • Challenger Banks are here
  • Incumbent banks will survive, but can they thrive?

Check out my recap of the World Fintech Report 2019 – Preparing for Open X. You probably guessed it, this year Cap Gemini talk about embracing Open X. See the World Fintech Report 2020 for full details of this years instalment – in the meantime, following is a quick recap:

World Fintech Report 2020 – 4 Key Themes:

Big Tech and Challenger Banks Strengths:

  • Digital – operating on an open platform model that integrates with other platforms and apps
  • Data driven – allowing customer focused products and services by leveraging the available data
  • Agile – scalable technology and cultures that allow products to be launched quickly
  • Customer focused – with simple solutions, lower cost products and services, and a faster service

Incumbent Banks need to embrace Open X:

  • Open X moves traditional banks beyond compliance for the sake of compliance, nicely explained by Cap Gemini by the following equation:
    • Seamless eXchange of data and resources + eXpedited product innovation = Improved customer eXperience

Succeeding in an Open X world requires traditional banks to:

  • Transform themselves into Inventive Banks by being:
    • Customer focused
    • Collaborative
    • Agile
  • Recognising their strengths in one of the following areas:
    • Suppliers
    • Aggregator
    • Orchestrator
  • Strengthen their mid- and back-end operations by partnering with mature fintechs in a 3 step process:
    • Identify – by creating the end to end customer journey
    • Prioritise – identify the mid- and back-end processes that will have the biggest impact on operational efficiency and Customer Experience
    • Collaborate – with Fintechs

Open X demands Collaboration between Inventive Banks and Fintechs across 4 key areas:

  • People – a dedicated collaboration team
  • Finance – fail-fast mindset to innovation so any dead ends are quickly avoided
  • Business – scalable partnerships with trusted providers
  • Technology – reduce the dependency on legacy systems



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