"Products were developed around a sturdy core banking system and rigid business process to ensure security and trust, distributed through branch networks, and only then wrapped in a customer experience and brand veneer. But those days are over because customers and the market demand the opposite. Today's Fintech upstarts and digital-first neobanks have flipped the model on its head, designing their institutions from the outside in."
"High barriers to entry reinforced this model. Building a bank required heavy investment in branches, licenses, compliance, staff and years of preparation, which kept competition slow and scarce. The digital era has dismantled those barriers. Fintechs can launch in months using third-party tech stacks, APIs and cloud platforms instead of decades of infrastructure. Even individuals can issue tokens or digital assets in minutes. The only real requirement now is delivering clear value to a customer segment."
Banks historically built from a secure core outward, prioritizing balance sheets, risk management and branch distribution while customer experience was secondary. High entry barriers—branches, licenses, compliance, staff and long lead times—kept competition limited and products largely undifferentiated. The digital era removed those barriers: third-party tech stacks, APIs and cloud platforms enable fintechs and individuals to launch quickly, issue digital assets and target specific customer segments. Customer expectations now favor seamless experiences, emotional connection and value alignment, and switching costs are low. Competing on process and price alone is insufficient, so incumbents must redesign business architecture around customer-facing capabilities.
Read at Medium
Unable to calculate read time
Collection
[
|
...
]