News

Efma explores reinvention of traditional banking model

In a new report, the European financial organization looks at the impact of fintech and the ways that banks can work with startups to benefit customers and remain competitive.

April 8, 2016

Efma has published a new Efma Digest highlighting the ways that fintechs are influencing the range of services provided by retail banks, disrupting the traditional business model and introducing new customer challenges.

"Fintech: reinventing banking" examines different types of fintechs and to disrupt the traditional banking industry through the rapid introduction of new digital services and customer experiences.

The report also showcases the ways banks are approaching the fintech challenge.

Some, such as Santander, National Bank of Australia and Citigroup, are providing venture funding and seed investments for fintechs.

Others are partnering with external accelerators and incubators, or, like Sberbank, creating internal incubator programs.

A few, including BBVA, have fully acquired fintech start-ups, the report observes.

"We're yet to see which type of approach will prove the most fruitful, but industry experts are unanimous in their belief that those banks which bury their heads in the sand and fail to acknowledge the impact of fintechs are putting their entire business at risk," said Efma CEO Vincent Bastid.

The digest also contains expert opinion from industry players including Nadav Yur, head of business development at eToro; and Philippe Poirot, director of digital development, transformation and quality at Groupe BPCE.

It also features insight from Olivier Peeters, innovation advisor at BNP Paribas Fortis; Jim Marous, co-publisher of The Financial Brand; Brett King, CEO of mobile bank Moven; and Chris Skinner, an independent financial markets commentator, author and chair of the European networking forum the Financial Services Club.

CEO Heather Cox discusses the Citi FinTech unichannel approach to banking; Andres Wolberg-Stok, Citi global head of emerging platforms and services, advocates "fintegration" — FIs folding the best fintech offerings into their own services.

"Our Efma Digest brings together a wide range of insight, opinions and case studies to illustrate the full depth and breadth of the fintech challenge today," said Bastid. "We question which types of fintechs are posing the biggest threats and we find out how pioneering banks are leading the way with effective solutions."

"Fintech: reinventing banking," is available as a free download. Future entries in the Efma digest series will be available to members only.