Bitcoin is ruffling feathers big time. Imagine what the continuous rise of this crypto-currency means for the world’s financial system? This piece is not necessarily focused on bitcoin but one cannot but wonder if the banking system as we know it would be in existence five years from today.
Personally, I think some banks would have gone into extinction, if they were not responsive enough to start seeking a strategic partnership with the Fintechs.
A few years ago, when the crazy guys, who today, are part of the Fintech firms emerged, the banks saw them as a bunch of nuisance and never took them seriously.
The story, however, changed when the banks realised that the mind-blowing innovations from the Fintechs had the capacity of pushing them out of business if the situation remained unchanged.
Today, there is no bank in Nigeria that does not have a relationship with the Fintechs and that is the most efficient way to go about it. The banks, over the years, have been operating under a conservative environment.
This sort of strait-jacket approach in today’s digital age is no longer acceptable. They must be acting fast enough to take crucial decisions within the shortest time frame possible. In their board rooms, they hold strategic sessions where they brainstorm on the next line of product or service.
Sadly, these sessions could take several weeks before a final decision is made. From what we have seen in the digital age, it is imperative for banks to alter the status quo and embrace complete digitisation.
It should not be an issue of one leg in, one leg out. This situation creates a big challenge for the banks because they are not able to adjust quickly to the changes, not just in embracing digital migration technology, but also in operations, culture, and other facets of the industry.
Today, banks are facing the challenge of offering real-time quality customer experience that is digitally demanding. The customers do not care about those rules and regulations; rather, they are concerned about the quality of customer service experience the banks offer. That is why the banks are often under pressure to meet up with the demands of customers.
The digital disruption is not only affecting the banks alone, but also the players in the technology space who are already feeling the heat because any product launched in the telecoms space has less than 24 hours to experience competition. The moment you unveil a new product in the market, your competitors are planning to launch a higher version of what you have.
One will, however, wonder why banks have not fully embraced digital migration. One thing is clear, — Finish Reading on the Punch
