Fintech vs. Fintech: the rise of digitalisation in banking

When markets suffer big disruption, it is often difficult to assess the long-term impact. However, in the case of the pandemic, we can at least be sure that it has only served to further consolidate the drive towards digitalisation in financial services. In fact, digitalisation is no longer a “nice-to-have” but something imperative for any firm wanting to operate in the sector.

This is because we are not just seeing changes in the way that customers interact with financial institutions, which still be significant by itself, but we are also seeing changes in the ways that customers live their daily lives. As long as organisations continue to adopt an increasingly more customer-centric approach to business, they will have to adapt, both in terms of technology and strategy, if they are to address these changes.

As a result, the financial technology sector is more popular than ever, with mass market uptake and increasing venture capital funding. The number of people using challenger banks is no longer counted in the thousands but the millions, and other banks are wrestling with regulations to go head-to-head with the largest banks that, until now, were untouchable.

Ultimately, the Fintech market is no longer focused on simply finding innovative solutions to specific problems but has become a prosperous mass market in itself.

These are just some of the key points found in the latest report by the specialist website Fintech Futures, which is part of the British business intelligence and publishing group Informa PLC. Here at GDS Modellica, we wanted to highlight five insights from this report and present them in an infographic for our readers. Fintech companies of all types have embarked on this journey and have quickly picked up speed, but there is still a long way to go toward the digitalisation of financial services.