The bank of the future will have to be very different from today’s common structures and business models if it wants to compete successfully and to satisfy ever-changing customer needs.
It will consist of a construct of innovative and independent financial-technology (fintech) companies. If required, it will also include traditional financial service providers.
Many financial institutions, such as banks, already cooperate in some partnership with fintech firms. However, we propose a single-minded pursuit of primarily using only fintech firms as financial service providers.
The new proposed bank is named Best-in-Class Fintech Bank, and it differentiates itself from existing banking business models, including the ones that already have some form of partnership with fintech firms.
The big difference is that the majority or all of its offered financial services are provided by independent and innovative leading fintech companies.
The new bank will offer customers an “open fintech architecture.” It is figuratively a logical development of the well-known open fund architecture but with the important difference that the best fintech companies are offered in place of the best fund products.
For the fintech partners, the benefits of being part of such a structure will be the access to more customers, faster reach of critical size, and a solid foundation for expansion and growth.
The disadvantages of joining such a financial service supermarket should be negligible since they will still maintain their core competencies, and a sale to a third party is not precluded.
The king is dead, long live the king!
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
Charles Darwin, The Origin of the Specie