Over the last few years, the terms “GAFA” or “GAFA companies” have become completely standard when talking about the digital economy. Google, Amazon, Facebook and Apple – these were the companies taking the lead and changing the way that consumers and services interact with each other. But the online market is all about constant evolution, and this acronym has evolved too. Now, it is FANG – Facebook, Amazon, Netflix and Google. Apple and Microsoft, once kings of the technology market, are no longer at the top table.
Applied to the banking industry, the concept “digital” specifically involves understanding and applying the unique traits of these “FANG companies”, including hyper-personalisation, on-demand services, interconnectivity with third-party platforms and recommendation algorithms. People now confidently proclaim that “digital-first” does not just mean launching a mobile app. But if this is true, you can be forgiven for being a bit lost. We know what digital-first is not, but what about what it is? This is precisely what The Financial Brand wanted to get their teeth into, outlining the four key features of “FANG banking”.
These four features are omnichannel, growth marketing, open banking and digital payments. At GDS Modellica, we wanted to present this information concisely with an infographic, contrasting the features of traditional banking with those of new banking. It is a stark comparison where we can see that the days of traditional banking are numbered. The advance towards the new banking model is unstoppable and includes, at least, one of the following three approaches:
1. Overhauling the core business. This might be the most outdated approach, but it may be necessary for truly stagnating businesses.
2. Progressive modernisation. Reinventing the customer journey and adapting to the demands of the market.
3. Greenfield tech stack. A combination of technologies that are not restricted by previous models.
Depending on which steps are applied and how well they are implemented, a financial institution will ultimately become one of the four types of “FANG banks”: a leader, a challenger, a follower or a loser.