Moving Banking Beyond the Prison Paradigm
Ever since their existence, banks have become an indispensable part of society, shaping the financial landscape for retail, corporate and wealth customers alike. But in today’s digital-first age, most banks have become complacent, remaining convinced that they are and always will be, immovable institutions. While the rise of digital-native challenger banks and big tech companies like Apple and Facebook are challenging this belief, driving customer expectations to new heights, banks have been slow to respond.
They still rely on false assumptions that regulators will soon put a halt on the continuing growth of these digital-first players, and that inertia will keep customers sitting tight with their current providers. In other words, banks see bars – bars keeping the challenger banks out, and bars keeping customers in – a prison paradigm.
So – why is the prison paradigm so flawed – and how can banks move away from this assumption before they become obsolete?