The FinTech Effect and the Era of Banking Disruption – Presented by Marco Antonio Cavallo
Marco Antonio Cavallo, founder and analysis director of CGN Research & Advisory Group, shared his view on the FinTech effect and the era of banking disruption, with a group of more than 500 virtual attendees from 30 countries. These are all conclusions from the online conference organized by FIBA.
- Financial technology, or FinTech, will boost the new business model for financial services.
- The benefits of associating with FinTechs are obvious for the banking industry.
- FinTechs (or financial technology companies) should understand scalability.
- It is not about technology, but about what can be created with it.
- There is a significant gap between the expectation of the digital consumer and the offers from traditional financial institutions to their clients.
Cavallo considers that the financial industry has been historically slow to innovate, so for traditional banks partnering with a smart startup in order to use their leading edge technology can be a quicker way to create a new competitive advantage in an increasingly digital market. “The banking industry should see the big picture and aptly agree to the long-term impact of an association with a FinTech company or its acquisition,” he said.
“There is no need for the banks to deeply understand the underlying technology in order to realize that the original rules of the business remain the same. The banking industry is in need of creative, talented individuals who can synchronize the new technology with the business goals of the industry; because the new digital consumer needs faster and more convenient mobile and online services,” said Cavallo.
Lastly, he noted that the relatively poor performance by most of the traditional banking organizations on customer-driven digital accounts, the opening of said accounts and the cross-selling process involve an opportunity for those institutions that wish to grasp the potential of becoming “Digital Banks.”
Cavallo is an expert, columnist and blogger of advanced strategies of information technology at CIO.com and member of the IDG Influencer Network. He will be participating in CL@B 2017, the 17th Financial Technology and Innovation Conference, organized by Florida International Bankers Association (FIBA) and Latin American Banking Federation (FELABAN) in Miami between August 30th and September 1st.