Disruption hasn’t happened in financial services yet; the doomsday scenario for incumbents painted by high flying FinTech startup CEO’s hasn’t materialized. But don’t be fooled into complacency. Enormous challenges loom ahead.
Disruption is one extreme end of the change spectrum, with status quo being the other end. In between those extremes lie many stages, colors and nature of change, which may not be readily visible, but connecting the dots reveals a pattern. And the pattern is deeply disturbing for incumbent financial institutions. Transparency and competition are driving down fees while digital technology is helping customers switch providers more easily. Plug and play technology and niche startups are targeting narrow slices of the bundled financial offering, weakening the historical advantage of large financial institutions that aggregated services. Digital firms (FAANGs and others) are wedging themselves into the value chain between the customer and the financial institution, influencing customer decisions and carrying the relationship away from the institution. Manufacturers of financial products are losing ground to distributors, while digitization consolidates distributor relationships.
This special presentation will describe what’s changing in finance today, what has the last 5 years of frenzy around FinTech startups, disruption, and innovative technology really resulted in? What are the subtle changes happening?
Here’s a sample of ways that Mr Shahrawat will describe how our industry is changing:
1) Profit pools are shifting
2) Value chains are disaggregating
3) Startups are chalking the field, creating new rules of competition
4) The incumbent’s size and scale advantage is eroding due to technology
5) Unconventional players (FAANGs) and foreign entrants (ANTFinancial) are emerging
6) Financial firms are struggling to navigate the pace of product and business model evolution
7) Finance is losing the talent war to high tech, and things aren’t getting better
8) Non-financials (like Big Tech) are driving customer preferences, influencing behavior, and eroding the power of big financial brands
9) Digital firms are wedging themselves into the financial value chain, controlling the user interface and gaining market power over financial companies
10) Investors are according higher P/E’s to capital light business models.
Come and participate in a lively, thoughtful and insightful presentation on the current state of financial services, and what lies ahead.
It’s a perfect way to end the Summer, and get ready for the Fall! See you soon.