Harnessing digital technology, keeping the customer in focus
Large financial institutions in Australia are struggling to catch up with changing customer expectations, particularly when it comes to using digital technologies to offer services that are engaging, convenient, accessible and cost-effective. On the other hand, the many emerging Fintech start-ups we are seeing in Australia are struggling to increase their reach and secure customer confidence, especially when it comes to long-term financial arrangements like mortgages.
This is why, ultimately, it’s not a case of Fintech versus the banks – rather, one side’s weakness is the other side’s strength. Fintechs need help scaling up, while incumbents can benefit from learning how to harness digital technology to keep the customer at the centre.
The answer? Incumbents need to consider strategic partnerships with Fintechs that are carefully assessed and appropriately supported. When treated as a way to tackle business problems, while catalysing cultural evolution and innovation, these partnerships can help both Australian Fintechs and traditional financial institutions to weather the oncoming storm of Big Tech companies – e.g. Apple and Amazon – that is set to make a play for significant market share in payments and beyond.
This report is the result of an ongoing collaboration between Capgemini and the University of Sydney Business School.