A pragmatic assessment of disruptive potential in financial services
Fintechs have defined the direction, shape, and pace of change across almost every financial services subsector. While they may not dominate the industry today, they have laid the foundation for future disruption.
Looking across several financial services sectors, we have found that Fintechs have materially changed the basis of competition in financial services, but have not yet changed the competitive landscape. However, despite their lack of scale, they have laid the foundation for future disruption.
The report uncovers eight disruptive forces that have the potential to shift the competitive landscape of the financial ecosystem.
- Cost commoditisation: Financial institutions are embracing new technologies to accelerate commoditisation of cost drivers.
- Profit redistribution: The location of profit pools within and between value chains are shifting with new technologies.
- Experience ownership: Distributors will enjoy a position of strategic strength as owners of customer experience; manufacturers are expected to become hyper-scaled and hyper-focused.
- Platforms rising: Financial institutions are shifting to multiple-provider platforms as a channel to distribute and trade across geographies.
- Data monetisation: Financial institutions are starting to use a combination of data strategies to follow the lead of tech firms in data monetisation.
- Bionic workforce: New technologies such as Artificial Intelligence will mean major shifts to financial institutions’ workforces.
- Systemically important techs: Financial institutions of all sizes rely on large tech firms’ capabilities.
- Financial regionalisation: Diverging regulatory priorities and customer needs is making way to tailored regional models of financial services.
The Future of Financial Infrastructure: An ambitious look at how blockchain can reshape financial services
This project explores the potential for distributed ledger technology to transform the infrastructure of the financial services industry.
A Blueprint for Digital Identity: Disruptive Innovation in Financial Services
The Blueprint for Digital Identity project is the most recent phase of the World Economic Forum’s ongoing Disruptive Innovation in Financial Services Project in collaboration with Deloitte. This project explores the potential for digital identity in financial services and beyond and lays out a blueprint for the implementation of effective digital identity systems.
The Future of Financial Services: How disruptive innovations are reshaping the way financial services
The Future of Financial Services project explored the landscape of disruptive innovations in financial services, provided the first consolidated taxonomy for these disruptions, and explored their potential impacts on the structure of the industry.