Digitisation will make 80% of the financial firms irrelevant by 2030
This may seem like something we need not concern ourselves with now, but 2030 isn’t that far away (well it is a bit). However, the idea is something we have to think about, especially for those of us in the communications industry. David Furlonger’s point is less about the what is to come and more about the why.
If we think back to the ecommerce era and the havoc digitisation caused to the retail industry this becomes apparent. Digitisation of the retail sector is what made Amazon the giant it is today. Digitisation has cut out the hassle of going to out to get your groceries, I guess it is in our nature to seek convenience. And I believe it is this convenience seeking behaviour is at the heart of the why.
Theodore Levitt famously said “People don’t want to buy a quarter-inch drill, they want a quarter-inch hole”, and the same theory applies. People don’t want personal bankers they want personalised banking advice. And the proof of this is already in the making, with the likes of Bank of America launching Erica, a chatbot that can help you check balances, reminds you about bills and answer your bank-related questions.
Digitisation means emerging fintechs will be challenging the long established big financial firms by catering to our convenience seeking behaviour and thus potentially making the big names irrelevant unless they do something about it.
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