At the recent World Economic Forum it was noted that 90 per cent of the data we use today has been created in the past two years!! how crazy is that? The ability of new technology to capture and process big data is changing how we do business and the way consumers use products and services.
Information technology (IT) in financial services has traditionally been viewed as an operational detail that takes a backseat to business strategy. But in today’s technology-driven world, strategy and IT are inextricably linked. In fact, more often than not IT is now the primary catalyst of competitive advantage and strategic disruption in financial services. Every company is a technology company at its core. This is especially true in financial services.
We’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs. No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new FinTech revolution. The battle already underway, will create surprising winners and stunned losers among some of the most powerful names in the financial world.
This revolution will have the potential to transform important areas of the financial services industry like:
- Retail Banking
- Lending & Financing
- Payments & Transfers
- Wealth & Asset Management
If you work in any of these sectors, it’s important for you to understand how the FinTech revolution will change your business and possibly even your career. And if you’re employed in any part of the digital economy, you’ll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable.
While Australia’s financial sector represents a large proportion of our economy, it makes up only a small proportion of our trade. FinTech offers the opportunity to boost our exports in financial services, capitalising on our proximity to the growing middle class in Asia and the rising importance of digital economies in the region and across the globe. Companies that embrace innovation, that are agile and approach change confidently are more competitive, more able to grow market share and more likely to increase their employment. More jobs and more growth is what is at stake here!
FinTech is going to revolutionise how consumers do business, as the drivers of economic activity. This is going to have big implications for demand in the future. We need to be part of these changes and embrace them but most importantly we have got to work out the best way to engage with FinTech and prepare for the financial system and economy of the future.