A recent report by McKinsey suggests that established banks risk becoming “a footnote of history” if they fail to embrace the opportunities emerging from FinTech. But how do disrupters and regulators anticipate the FinTech revolution playing out?
“It’s obvious that banks can no longer ignore FinTechs,” Marjan Delatinne, Global Head of Banking, Ripple, said during a session at The Asia House Global Trade Dialogue in Singapore.
“It’s a question of survival at this stage,” Delatinne said, citing “large incumbents” such as Visa and Mastercard moving towards new business models.
Banks need to change, Delatinne added, while noting the substantial challenges they will face in making such transformations.
For Eddie Lee, Regional Director of Operations, Revolut, collaboration is the way forward.
“Partnerships are quite critical,” Lee said, adding that companies such as Revolut – which focus on creating a seamless experience for end users – see value in a collaborative approach with established banking players.
“When we first started in 2015, many of the banks viewed us as a pure a competitor, but the dialogue has evolved,” he said. “Revolut can be an incredible acquiring engine and partner for banks to [enable] a better customer experience.”
Asked by Michael Lawrence, Chief Executive of Asia House, if banks do indeed risk becoming “a footnote of history”, David Hardoon, Senior Advisor (Artificial Intelligence), Monetary Authority of Singapore, predicted a shift in approach.
“People need banking services. They don’t necessarily need banks,” Hardoon said. “I don’t think banks will become a footnote, but there will definitely be a change in what they look like and how they operate.”
WATCH the full discussion from the Asia House Global Trade Dialogue at Asia House TV