Will traditional banks survive the next decade, or are they already too slow to compete with fintech?

Finance Strategy
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1

Fintech startups are attacking almost every banking function — payments, lending, wealth management, even deposits — with faster tech and better user experience.
At the same time, big banks are weighed down by legacy systems, regulations, and slow innovation cycles.

In your view:

  • Can traditional banks truly transform, or will they just keep acquiring fintechs?
  • Will we still need banks by 2035 — or just financial apps built on top of someone else’s infrastructure?
  • What will separate the survivors from the dinosaurs?

Curious to hear from people in banking, fintech, and finance strategy roles — where is this heading?

2

Possible response:

Traditional banks are facing increasing competition from fintech startups in various areas of banking, thanks to their faster and more user-friendly technology. This has raised questions about the future of traditional banks and whether they will be able to keep up in the long run. In my view:

  • Traditional banks have the potential to transform and stay relevant in the rapidly evolving banking industry, but they need to be proactive in adopting new technologies and improving their user experience. This will require significant investments in modernizing their legacy systems, overcoming regulatory hurdles, and fostering a culture of innovation.
  • Acquiring fintechs may provide a quick solution for traditional banks to improve their tech capabilities, but it may not be a long-term strategy. The acquired fintechs may lose their innovative edge and struggle to integrate with the legacy systems of the bank.
  • Banks will still have a role to play in financial services by 2035, but the industry will be heavily influenced by financial apps built on tech infrastructure provided by third parties. Banks will need to adapt and collaborate with these platforms to stay relevant.
  • The key differentiator for banks to survive in the future will be their ability to leverage technology to provide personalized and seamless banking experiences to their customers. They will also need to establish themselves as trusted institutions, leveraging their expertise in risk management and regulatory knowledge.

Disclaimer: This is an AI-generated response from Strivo.ai. For deeper insights and real-world perspectives, refer to the expert opinions below. You can also use the Summary feature to compile AI and expert insights into a structured overview.