The Real Challenge for Banks in the Innovation Era: A Mindset Shift
Arjun Vir Singh
Enthusiastic about the Future of Financial Services | Learning about AI, Web3, Digital Assets | Advisor | Investor | Podcast Host | Author | LinkedIn Top Voice | Father to two daughters | All views on LI are personal
During the recently concluded 24 Fintech event in KSA, I had the opportunity to moderate a panel titled: Applying Optimal Strategies to Accelerate Collaboration and Expedite Access to Fintech Evaluation (a mouthful of a title ????).
Joining me on the panel were - Ramkumar Balasubramaniam (Barclays ), Ritika Butani (Remitly ), Abdullah Alwabel (Banque Bemo Saudi Fransi ) and Lucien Liu Zhengze (Huawei )
We covered a number of interesting topics including the need to change the mindset among banks which would accelerate collabs with fintechs and techfins. Here are my own views on why I believe that it’s actually one of the most important ingredients of change to ensure that banks and fintechs can truly collaborate at scale. Across the board, many if not all banks are scrambling to keep pace with the speed of innovation. However, the true challenge facing these institutions isn't about accessing new technologies—it's about fundamentally changing their approach to innovation and collaboration. The key to accelerating digital transformation and improving ROI doesn't lie in simply acquiring the latest tools. Instead, it requires a profound shift in culture, attitude, and mindset within these incumbent organizations.
What I suggest needs to change (the lists isn’t supposed to be exhaustive so open for additions or comments):
?? From vendors to partners: Banks must start viewing fintechs as strategic partners rather than mere vendors. This collaborative approach can unlock synergies and drive mutual growth.
?? Embracing open innovation : Moving away from a closed, in-house innovation model to one that welcomes external ideas and solutions.
?? Agility and measured risk-taking: Adopting a more agile mindset that's willing to take calculated risks and learn quickly.
?? True Customer-centric focus: Aligning with fintechs to prioritize customer experience and needs above all else. Using customer centricity as your North Star ?? will act as a powerful catalyst
?? Cultural transformation: Fostering a culture of continuous learning, adaptability, and innovation throughout the organization.The tools to enable fintech collaboration are readily available.
What's needed now is the willingness to embrace a new way of thinking and operating. In my mind, I have no doubt that Banks that successfully make this mindset shift will be the ones leading the industry into the future.
Credit Associate / Field Due Diligence / Web3 Visionary
1 个月Great and insightful post Arjun Vir Singh . Your contributions to the field are immeasurable. I second your views. I believe that Banks need to reconfigure their role in society and adapt an open approach to collaborating with external technology firms that can fast-track innovation and provide a customer-centric approach to product building.
Good points Arjun Vir Singh, although it has been the case for some time now that the tech is there, the mindset is not. I would add to your pathway forward that the ecosystem is key. Banks can determine what is 'core capability' that they need to build / own / run in-house, and what they can leverage through partnerships with FinTech / BigTech. This model drives more innovation with better speed, agility, proven value and can lower cost. The issue then is meshing what is created with what it needs to work with in the existing tech stack, and navigating the 'outsourcing risk' that the regulator worries about.
Business Development Manager
1 个月This innovation is good and needs to be applied... I strongly think when this analysis begins to hit on the growing economies , the world should be a better place for talents