Why banks will transform into marketplaces

To digitally transform, banks need to unbundle and become a marketplace to enable ecosystems.

FinTech and Financial Technology
Thinkstock

Become An Insider

Sign up now and get FREE access to hundreds of Insider articles, guides, reviews, interviews, blogs, and other premium content. Learn more.

Consumers today want to bank where they want, when they want and how they want. This includes across digital channels, 24/7 and without attachment to any one provider.

Speaking with global banking leaders last month at the annual Web Summit conference, all agreed that the future of banking will be defined by these very consumers. The reality is, though, that banks don’t have many touchpoints with consumers anymore and ultimately provide a utility service: consumers check their balances weekly or pay their mortgages annually. For payments, it’s far more likely consumers use unregulated apps like Venmo and PayPal. In Singapore, for example, ride-sharing provider GrabApp built a mobile wallet directly in its app, which customers use to digitally pay for their rides or split bills at restaurants.

To continue reading this article register now

SUBSCRIBE! Get the best of CIO delivered to your email inbox.