In 2018, total global investment in fintech companies hit $111.8 billion across 2,196 deals. In Europe alone, investment in fintech reached $34.2 billion across 536 deals. Technology giants such as Alibaba, Alphabet, Amazon, Apple and Facebook are venturing into the financial services industry to disintermediate the distribution channel through new payment methods and other financial services.
Banking clients today can choose from a broad range of options, which are especially suitable to younger generations who prefer to use different banks depending on which has a product or a service that is best placed to satisfy their specific needs. Challenger banks and Tech Giants are putting pressure on established financial institutions’ retail banking divisions by providing clients with more choices and innovative products.
Traditional banks ought to adapt and improve their business models to keep pace with new market demands.
Our Digital Innovation and Banks Focus Teams analyse how banking is being transformed by technology and available digital strategies in the document available here.