The banking industry is at an inflection point, with traditional institutions competing not only with each other, but also fintech challengers. In this hyper-dynamic environment, the ability to operate a traditional banking model has become more difficult than even many financial institutions are willing to admit.
For instance, 74% of banking executives in a KPMG survey believe that their digital capabilities are “above average,” and yet 57% of respondents said their institutions were only either in the evaluation or planning stage of upgrading or replacing their legacy IT systems.
Contrast this with the fact that 53% of Millennials in the same KPMG study say their current banks’ offerings are identical to other providers, and 73% say they would consider banking with tech companies like Google or Apple. Nevertheless, three in five banking executives don’t view fintech forces as threatening. Go figure.continue reading »