KURT WEBER, Managing Director, HORVÁTH & PARTNERS: The context will enforce trends that have been invisible before in banking

Being an international consultancy company, we naturally come in touch with international trends and market moves. In banking, those banks who have been ahead of the crowd in terms of digital banking are doing a lot better than their traditional model-based peers. The ongoing pandemic crisis will enforce trends that have been invisible before, such as mobile banking for instance. The mobile phone is the first choice for young generations who are a big asset for the modern banking.

At European level, especially in Eastern Europe region, banks are currently having difficulties in terms of traditional retail banking, where  the margins are really low. So the questions should address aspects related to: How can they develop new banking models and also use the big assets of the traditional retail banking: the connection to the client, the data, the existing banking brand awareness.

The smart banking industry should focus on building healthy ecosystems in order to bring the added value to their customers.The smart banking industry should focus on building healthy ecosystems in order to bring the added value to their customers. The bank clients will need help and support in accessing also non-banking services, better perform transactions. By opening bank’s APIs, additional services from new core to non-banking can be integrated easily.

In Romania, the main challenge is that traditional banking is still successful and leads to a comfortable situation comparable cu the retail banking in other markets.  Traditional retail banking is still profitable, and this could change. The current crisis will accelerate how the banks look at digitalization and the signs are already seen at the level of retail networks. The pandemic will drive the need to shift to mobile and online banking and adjust the business models accordingly. For sure, the pandemic crisis was a strong driver for the change. 

The statement has been uttered within the recently held web conference dedicated to Digital Transformation Conference – Fintech & Banking.

The event benefitted from the support of DIAMOND PARTNER Wipro Limited, GOLD PARTNERS ACCA, Inform Lykos, OTP Bank, STRATEGIC PARTNERS ARB (Romanian Association of Banks), CIO Council, ARIR (Romanian Investor Relations Association),  PARTNERS Arval, Sea One, Wave, WITH THE SUPPORT of ANIS, Cluj IT, FabLab Iasi, and MEDIA PARTNERS Outsourcing Today, Financial Intelligence, Economistul, Romania Durabila, Club Economic and Pin Magazine.

BANKING AND FINTECH are transformed by the digital revolution that gives this industry a chance to rethink its models, to better address the new consumer’s demands and needs, to better communicate and anticipate its behavior. However, the transformation of organizations is an undergoing process and the fintech companies play a major role in pushing the process forward. The use of emerging technologies – Analytical, Big data, cloud, Internet of Things, Blockchain, omnichanneling are not anymore new concepts but daily working tools in banking and fintech companies.