New technology, new behaviour and banking are merging: Here are Nutmeg, Betterment, and Bunq

Fintech a short lived hype? Don't Bunq on that!


While new Fintech start-ups are entering the financial industry across the globe, too many established firms are hoping and praying that this trend won't last. Guess what? We're in the midst of a massive change.


As consumers get more and more hooked on their smart devices they spend increasingly more time online. Time spent on smartwatches, smartphones, smart tv's and in smart cars increasingly distracts clients from traditional media like the tv and print media. Many established firms consider this a great risk. 

Courtesy of Security Magazine


And maybe for them it is, since their IT departments are too often struggling with cleaning up old legacy systems of the past. Caught up in heavy-duty Prince2 programs spanning multiple years. Not spending sufficient time on new reality. Not necessarily something to be ashamed of. However, dangerous in many ways. The question rises what these established companies are doing to capture the massive trend of digitization? And whether they know they're in trouble.


For many of these companies time will tell and for some it will probably be a typical case of "too little, too late". These companies seem to underestimate the changes in client expectations, the decreasing barriers of entry and the power of new technology.


e-Consumer: The most important change that has been taking place over the past decade is the change of expectations of consumers and the change of their behaviour. Consumers want to be serviced on their terms. This definitely means that companies need to step up their systems, processes and services to facilitate the modern customer journey. Relevant technology needs to be integrated to service the customer when and where she deems relevant. 

An example: Why should the client need to start up his computer or go to the bank branch, while she prefers to sign up for your service while sitting on the couch with the mobile phone in her hand. As the new Fintech entrant Bunq displays you only need to take a picture of your ID, of your face (facial recognition software) and deposit Eur. 0.01. And that's enough to identify you as a client. Done in about 5 minutes and you can start banking. Awesome!


Does this mean 'check mate' for traditional financial firms? Not necessarily, but they need to get cracking. Although it goes too far to elaborate on the required measures we can say that embedding multidisciplinary client focused teams in the organisation with the goal to prepare the organization for the e-customer is a helpful start.


All and all the entry of Fintech companies mark a new era and we wonder who will stay and who will go? 



Vincent Hooplot & Michiel Breeschoten


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