The world has changed and the financial service sector will need to change radically in a world which is entering new norms of behaviour and business.
The urgency of this required change cannot be underestimated as the financial services sector will be critical to economic recovery once the main public health crisis is brought under control. The question is, how the financial services sector can adapt to the ‘new normal’ and how can it do so quickly?
This is a challenging thought, how will organisations change? How will organisations survive in a situation that they have never seen before? How will organisations pivot?
As a Fintech company, we have had to pivot over the years, sometimes out of choice, sometimes out of necessity. But what does pivot mean for a large established organisation?
Pivoting as an organisation can take on many forms. An organisation can pivot regarding its target market, the way it distributes and to who it distributes, change or amend product offering or change the strategic and the core of the company completely, to name only a few.
There are many companies doing this in the market today, car manufacturers are making ventilators, Whisky and other distilleries are making hand sanitiser, education has become 100% digital in some countries, to name a few, however, the question remains. How does an organisation in the financial services sector pivot?
We would suggest the most sensible way for established financial services organisations to pivot is to partner with those who have a proven track record of pivoting and adapting to a rapidly changing environment, namely effective Fintech firms. We suggest that firms embrace Fintech as a partner rather than just a supplier or a novelty. Fintech’s are an essential part of the value chain for financial services, now even more than ever before.
FinTech’s also need to adapt to understand the new role they will need to play, it won’t be about short-term gains but a much larger and long term play to becoming true collaborative partners. As with all partnerships, all parties need to support one another for the greater good.
It was always said that change is inevitable, but now change is the norm. Now is the time to find a suitable, sustainable partnership and prepare for the recovery phase.
ARTICLE WRITTEN BY: BERNARD NIEHAUS & OLIVER DOYLE
Bernard Niehaus is the Managing Director of Digisure, Oliver Doyle is the Chief Technology Officer of Digisure.
Digisure is a part of our Batch 3 Insurtech Program in Singapore.