Business impacts, new frameworks, and managerial implications
The rise of the ever-growing relationship between technology and financial services is bringing significant changes to the banking industry, which is becoming a battleground where competition is developing to be increasingly multifaceted. Shifting market conditions, customer needs, the entrance of new players & digital technologies, along with new regulations, are reshaping the whole industry and financial intermediation as well. Digital transformation is not only about technology but also about change, which is beneficial and desirable. In this scenario, FinTechs are becoming one of the main game-changers in the financial services market by leveraging the inherently interconnected nature of finance.
Even though technology is widely spreading in the industry, the human element will likely remain key in the future of banking as it is a ‘people business’ (Omarini, 2015). Visions, strategies, business models, and actions can be effective by consciously stepping away from the noise. Both banks and FinTechs will have to face ever-changing conditions and develop the ability to balance short-term targets and long-term goals, as well as short-term moves and a longer-term vision.
All of this is increasing the need to have a resilient financial system, which helps to keep up the customer’s trust in developed countries and create an environment conducive to financial inclusion in the developing ones.
The book Banks and Banking: Digital Transformation and the Hype of FinTech intends to pursue four main goals:
To highlight the clues for understanding the changes financial services industries have undertaken in the most developed countries.
To picture the role FinTechs are playing in