Fintech challengers and neo-banks have been able to offer powerful new ways to onboard and authenticate customers. Now, more than ever, consumers expect seamless experiences when dealing with their bank online. And with no sign that the growing demand for ultra convenience and connectivity is slowing down, traditional banks have no choice but to adapt.
On a panel at Future Identity festival last November, Russ Cohn, General Manager, International at OCR Labs commented that, “Banks understand the ‘Amazon effect’ on user experience, which has created very high customer expectations.” But are we seeing a ‘Fintech Effect’ on the way digital identity is managed in financial services? Or are traditional banks still exercising caution over adopting digital identity at scale?
Manuela Sedvartaite, Innovation Manager at Santander, also joined the panel and explained, “We understand the operational efficiencies and lower costs digital brings, we think about the customer first and understand that for them it’s a better experience. But we can’t always make it work. Sometimes new systems cannot be relied on, which is a serious risk from a compliance perspective.”
Perhaps, rather than the pressure of competition, collaboration is the key to wider adoption of digital identity across the financial sector? Felipe Martinez, CIO at Revolut has experience as a Fintechs in being seen as the fast-moving drivers of digital-first financial services, while traditional banks are portrayed as the opposite. Felipe argues that in fact, “The best results come from collaboration.”
He explains, “Traditional banks have legacy processes, systems, and mindsets but they also have a lot of wisdom, data and the value of their vast experiences and millions of customers and transactions. Banks partnered with fintechs, and with regulators shaping the rules is what will drive progress.”
Watch ‘The Fintech Effect’ panel discussion in full below.
Look out for the official launch of Future Identity Finance, taking place 28th April 2022, in London.