What shall banks do when technology companies become banks of the future?
They have plenty of choices actually!
1) Banks become technology companies. This is a very predictable response — you enter my turf, I enter your turf — and we compete. Here, ideally, banks should leverage their knowledge and capability advantage of risk management and compliances, and build a technology stack to leverage FinTechs (instead of themselves become FinTech*n)
2) Banks become platforms. What’s better than being a technology company with tech? Being a platform. It can grow through the network effect of partners. Banks are natural financial partner, they engage with businesses, and can easily position themselves as a platform for the transaction, commerce, distribution, discovery, loyalty, and more.
It needs nimbleness and the right change management OR initiation of a totally new org.
What are the other options for a bank?