Transaction banks need to harness their advantages as they look to develop strategies for the future.
They have an upper hand as they are licensed entities and are therefore built on robust compliance, risk and balance sheet management capabilities which engender strong, trusted relationships with their clients. But these highly regulated, complex institutions make them lumbering and slow to respond.
FinTechs, on the other hand, are flexible and can respond swiftly to market conditions. FinTechs are quick to bring value to areas such as operational efficiency or risk mitigation and it’s for these reasons that they are snapping at the heels of transaction banks.
Transaction banks need to adapt. They need to develop a culture that understands the increasing importance of data use and that embraces technological change. They need to become faster at bringing new services and solutions to the market. They need to build new platforms and review their infrastructure to be ready for the future.
Check out the latest infographic that looks at some strategies for the transaction banks of the future.