Today’s BT article, “Fintech seeks to reinvent finance industry” cites a report by the World Economic Forum in conjunction with US-based Deloitte Consulting LLP.
The mandate of this project was to explore the transformative potential of new entrants and innovations on business models in financial services. The key research findings synthesize six high level insights on innovation in financial services:
1. Innovation in financial services is deliberate and predictable: incumbent players are most likely to be attacked where the greatest sources of customer friction meet the largest profit pools.
2. Innovations are having the greatest impact where they employ business models that are platform based, data intensive, and capital light.
3. The most imminent effects of disruption will be felt in the banking sector; however, the greatest impact of disruption is likely to be felt in the insurance sector.
4. Incumbent institutions will employ parallel strategies; aggressively competing with new entrants while also leveraging legacy assets to provide those same new entrants with infrastructure and access to services.
5. Collaboration between regulators, incumbents and new entrants will be required to understand how new innovations alter the risk profile of the industry – positively and negatively
6. Disruption will not be a one-time event, rather a continuous pressure to innovate that will shape customer behaviours, business models, and the long-term structure of the financial services industry.
The report is available in soft copy. Please click on the link below:
Today’s BT article, “Fintech seeks to reinvent finance industry” cites a report by the World Economic Forum in conjunction with US-based Deloitte Consulting LLP.The mandate of this project was to explore the transformative potential of new entrants and innovations on business models in financial services. The key research findings synthesize six high level insights on innovation in financial services:1. Innovation in financial services is deliberate and predictable: incumbent players are most likely to be attacked where the greatest sources of customer friction meet the largest profit pools.2. Innovations are having the greatest impact where they employ business models that are platform based, data intensive, and capital light.3. The most imminent effects of disruption will be felt in the banking sector; however, the greatest impact of disruption is likely to be felt in the insurance sector.4. Incumbent institutions will employ parallel strategies; aggressively competing with new entrants while also leveraging legacy assets to provide those same new entrants with infrastructure and access to services.5. Collaboration between regulators, incumbents and new entrants will be required to understand how new innovations alter the risk profile of the industry – positively and negatively6. Disruption will not be a one-time event, rather a continuous pressure to innovate that will shape customer behaviours, business models, and the long-term structure of the financial services industry.The report is available in soft copy. Please click on the link below:
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