“This is a revolution which has only just begun and one in which banks have found new allies and rivals, depending on how they approach it,” a recently released report on the changing roles of financial technology firms (fintech) and banks said.
The report, called Fintech and Banking: Collaboration for Disruption Report 2016, is the result of discussions among bank executives and emerging fintechs.
Further, it said that the lines between bank-owned and operated services and those provided by fintech players and their partners are being “blurred.”
“The result is that traditional banking services are being disintermediated,” the report said.
Axis Corporate managing director Daniel Meere said in reaction to the report: “Banks must recognise that fintechs are players who are here to stay in the sector and that they will, with varying degrees of success, overcome the barriers they currently face.”
“The current disruption has the potential to shrink the role and relevance of today’s banks. (But) we believe that by putting the customer at the heart of their visions, strategies and innovation initiatives and collaborating with the right fintech firms, banks can create better products and services that make them an even more essential part of the new banking age,” he said.
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