This questions intend to gather personal opinions from observing and assess the reactions from incumbent banks, around the different markets, on the same challenge, which is digital transformation. And also understand if the way they react is enough to keep them resilient.
i think a good question is what expectations (scenarios) are in terms of timelines of digital transformation - what is the timeline or horizon we are talking about here, and why.
I do agree. Let's move in a 3 years scenario from now! And the reason why is to understand if they are aware about it, how much they are and if they are already equipped to face it.
I think that by esotericising the technology and the business models of FinTehs they are indeed following a wave of change that sets them becoming even more competitive in the future. The problem for me though is what they do and how they respond to the threat of TechFins as opposed to FinTechs especially after the GRPR and Open Banking directives that came to full effect very recently.
to throw stones in the bush:
a) it is correct to view banks as non digitally transformed, given the fact that there is long no more a gold standard. so in a sense, bank currency is already semi digitized, and cashless societies are increasing, and this is in exclusion of bitcoin. people simply do not need cash to transact or pay.
b) regulation and central banks. who is in the most favourable position when it comes to regulation? what lies ahead ito regulation? and (how) will the role of central banks really change?
I take your lead in this indeed but with a twist with regards to regulators: Regulators so far at least have been reactive to financial developments in that they follow the players and their financial engineering advances. This time though there might be an opportunity that brings them closer to being pro-active for once; for example, through real-time monitoring and reporting which can also enable them to regulate on a case-by-case basis rather than promoting blanket approaches or 'bucket' regulation.
Thanks for your contributions. Could I ask Yiannis to picture a little more its contribution ? clear to be pro -acti, but what do you mean by real-time monitoring.
As a subset of financial technology RegTech can enable regulator to obtain near real time information via the use of reporting technology. This is what some projects have started building up through regulatory sandboxes that afford the regulator the opportunity to test reporting capabilities in tandem with the creation of credit channels; i.e. as credit expands swiftly via alternative lending channels (e.g Fintechs) so does reporting that swiftly provides updated information on newly created credit exposures
It's clear! I thought it could be on that side, but I wanted to be sure about that!
In India atleast I can see that the Incumbent Banks are catching-up with the new gen financial institutions on Digital Transformation. There is certainly a push from the Regulators as well.
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