Fintech could tear apart the Banking world warns Barclays’ ex-boss
The Banking community in the UK risks loosing their customers to emerging Fintech Companies warns Barclays’ former chairman, Sir David Walker.
In a time of heated change in the financial sector, with new Fintech services revolutionising the industry, the banking world needs to act quickly to restore trust. The reputations and trust of the public was strongly affected during the financial crisis and Banks are taking too long to restore their standing in the public view.
“Despite all the efforts at reform that have been initiated and are currently in train, trust in banking is still at a very low level,” Sir David Walker commented in a speech to the Chartered Institute for Securities and Investment.
He noted that it may take a decade to rebuild trust in the industry and that it is easier to loose trust than rebuild it. This long time span has put the banking community at a serious disadvantage as new companies are innovating and challenging the nature of the financial industry.
One of the challenges faced by the banking sector, he points out, is that Fintech services are also disrupting the form of customer interaction. “An important part of that adaptation should be cultural, and should enable the bank to retain the confidence of its customers, however technology changes the form of customer engagement.”
Banks will need to focus on rebuilding trust quickly as well as adapting and remodeling their mode of customer engagement.