Fintech firms are already using advanced information technology to compete with banks in various parts of their “value chain”. Pure-play providers are on the rise and growing in number.
Is the one-stop-shop banking model doomed? There is a need for banks to revamp themselves, although it is unlikely for banks to completely unbundle, but they will continue to lose big chunks of what they do now. In response to this, banks need to adopt much of the technology used by their upstart competitors.
Barrie Wilkinson, a London-based partner and co-head of Oliver Wyman’s Finance & Risk practice in Europe, Middle East, and Africa, on bracing for the unbundling of banks.