Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services

Summary: 

This report from the World Economic Forum (Forum) and Deloitte studies the transformative role of fintech and other disruptive forces on the financial services industry. The report uncovers eight disruptive forces that have the potential to shift the competitive landscape of the financial ecosystem.

  • Cost commoditization: Financial institutions are embracing new technologies to accelerate commoditization of cost drivers.
  • Profit redistribution: The location of profit pools within and between value chains are shifting with new technologies.
  • Experience ownership: Distributors will enjoy a position of strategic strength as owners of customer experience; manufacturers are expected to become hyper-scaled and hyper-focused.
  • Platforms rising: Financial institutions are shifting to multiple-provider platforms as a channel to distribute and trade across geographies.
  • Data monetization: Financial institutions are starting to use a combination of data strategies to follow the lead of tech firms in data monetization.
  • Bionic workforce: New technologies such as Artificial Intelligence will mean major shifts to financial institutions’ workforces.
  • Systemically important techs: Financial institutions of all sizes rely on large tech firms’ capabilities.
  • Financial regionalization: Diverging regulatory priorities and customer needs is making way to tailored regional models of financial services.