International banks, regardless of how many centuries they have been operating, will be rendered useless in a few years time if they do not adapt with the current demand of the market through the use of newly introduced financial technologies. This statement has been true for the past few years but because of the rapid development in the fintech department, it might be possible that there is some truth to the warning once spouted by a top executive referring to the disruption as similar to a mass extinction.
The fintech industry is currently witnessing a revolution that has prompted the entrance of many new startups in the market that is currently disrupting its peaceful flow. Established names in the financial industry are trying to deal with the hand they are given by adapting since they think that the evolution of technology is rapidly coming yet banking fundamentals remain to be the same.
The CEO of Citi, an international consumer bank, Stephen Bird, said that these new changes are major in a way that a disruption this big has never happened before. Despite the bank being founded in 1812, they are just now transitioning to adapt to the fintech age.
According to a statement by Bird during the Hong Kong FinTech Week conference for 2018, there is an advantage when you have been in the industry for two centuries since it is in their DNA to survive whatever reinvention required and this has been the bank’s core ever since.
Bird added that this transition is treated as if they are going through extinction because the process is not gradual but rather it represents a single era. Looking at the amount of startups in the fintech market, banks must do whatever it takes in order to change their core processes for better speed, improved convenience and higher trust which will ultimately lead to more customers.
An expert in the subject, Nadeem Shaikh Anthemis noted that many of the international banks seem to be holding up their end including HSBC, Citi, Credit Suisse, Bank of America and Standard Chartered since they have all reported an increase in profit for their third quarter reports.