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.

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