Fintech 2.0 Report – Santander

Interesting report from Santander re fintech and banks working closer together. Good to see that NAB is already well on its way to achieving the kind of re-engineering in order to originate mortgages…. 😉

In conclusion……”Fintech 1.0 has brought only minor disruptions to the banking market, mainly in the areas of payments, credit and personal financial advice. But changes in customer preferences, advances in technology and growing investment in fintech set the scene for more radical change.

Fintech 2.0 could mean a “seamless specialisation” across core elements of the value chain whereby a variety of providers combine to deliver cheaper and easier-to-use propositions to end customers.

Banks must continue on their journeys of digitisation. But they need not travel alone. They should be clear about where their market advantages and institutional strengths lie. Where they fall short they should look to work with the start-ups who can provide what they need.

The same goes for the new fintechs. They may be entrepreneurial and ambitious but there is more required to achieve Fintech 2.0. Wisdom, market expertise, trusted brands and not least a banking licence may also be required.

The message to banks and to fintechs is the same: if you can’t beat them, you should join them to achieve Fintech 2.0.”

The-Fintech-2-0-Paper