Fintech 2020: Re-Evolution
The year 2020 is now right on the corner. Lots of changes are happening in the industry, and this conference is about trying to give the perspective of now, not in two years. How do the established players (banks, financial networks) have to reinvent themselves to stay relevant?
The Brazilian experience: The Journey from a Traditional to a Digital Bank in Brazil - Thinking like a Fintech
A digital bank transformation is happening in Brazil. A strong migration from old channels to digital channels took place in the past years. Brazilians are close to their banks and move to digital in a strong way. Investing in Fintech is a good strategy because Brazil is seen as a Fintech paradise. In 2018, the number of Fintechs has improved of 18% in Brazil.
BPCE, a traditional bank use-case: How is the changing Landscape (Regulatory, competition...) Pushing Financial Institutions to Innovate?
BPCE is one of the largest French banks. In general, in every company the IT people often just wait for instructions and provide responses for business. On the other side, business is focused on new products or revenue generation. What we need for digital is the combination of technology and business skills. Companies also have to focus on customer experience.
Two years ago, BPCE decided to create a dedicated entity with all those criteria. Over the last 18 months, three business KPIs have been targeted:
- Getting more customers using digital channels
- Providing a good customer experience and easy-to-use services at the same level as native digital players
- Moving more and more services in digital channels and sale transactions.
A lot of time has been spent to simplify the mobile experience, to make the apps work very fast and to add more features. BPCE is the first bank in France to introduce instant payment in the mobile application. They want to continue improving the mobile apps and websites, putting more effort on simplification of back-end processes and creating more personalized experiences by exploiting Big Data and artificial intelligence (AI).
Perspective of N26, a New Player: Bridging Banking to New Needs
Banking didn’t face disruption as fast as other industries:
- Because of the Costs: every changes you make in the bank industry requires a lot of money.
- Complexity: there are regulations, processes, partners to integrate.
- Regulation and licences: a very limited number of banks managed to get a licence over the last decades in Europe.
- Trust: when you’re a bank, you need to be trusted as a bank, even more if you’re a new player.
Paypal was the first one to disrupt the industry and to be massively trusted. There’s now a lot of players all other the world.
70% of the millennials would prefer go to the dentist than to a bank. Banks must focus on:
- Be more customer-centric and make sure he’ll love the service.
- Give the best digital user experience thanks to new technical tools.
- Pay attention to the pricing.
The mobile bank N26 has competitive points to reach those objectives: no IT legacy, a scale organization and a low cost of acquisition. It was the very first one to propose a full paperless account. N26 also wants to make sure clients are going to have an outstanding mobile experience thanks to a real time banking, proposing mobile banking and payment.
N26 is about 1,5 million customers across 22 markets around the world, for only 500 employees in three offices (Berlin, Barcelona and NY).