The financial industry is undergoing a transformation: Two-thirds of German banks are already working with fintech startups. And bank managers also see a significant need for adaptation within their own institutions.
The established players are under pressure from a whole range of new competitors, according to a recent study by Sopra Steria Consulting and the FAZ Institute: 46 percent fear online payment service providers such as PayPal or Google Pay. 44 percent see neobanks, i.e. fintechs such as Wirecard or N26 as a challenge. 39 percent expect attacks by global technology companies and 38 percent use comparison portals such as Check24 or Verivox as competition. Three out of four bank managers see a significant need for adjustments to their own business model over the next three years.
Banks seek collaboration with startups
Banks are responding to the current challenges in a variety of ways. Around nine out of ten respondents want to strengthen their own online offerings on their websites and in multi-banking apps, as well as expand their own customer platforms. Banks are also increasingly focusing on collaboration with new players. A full two-thirds are already working with fintech startups. Almost every second bank decision-maker surveyed (47 percent) sees collaboration with fintechs primarily as an opportunity to increase efficiency in the back office. A similar number of banks are seeking partners who can provide them with access to new customers.
“A cross-company strategy is needed”
Apparently, many banks still lack a comprehensive digital strategy. Only 39 percent of the bank managers surveyed report cross-departmental collaboration or joint development of processes in digitalization. Furthermore, only 22 percent of banks involve all their employees in the digitalization process and provide them with appropriate training.
"Banks need new combinations of products and services. Technology and data will be the drivers for the new business models. This requires a cross-company strategy and employees who bring it to life and develop it further,"
says Stefan Lamprecht by Sopra Steria Consulting.
