Incumbents: Accelerating digital transformation or being left behind?



Helene Panzarino, Associate Director, Centre for Digital Banking and Finance at The London Institute of Banking & Finance.

Banks and other financial institutions have struggled to find a way to swiftly and efficiently create meaningful commercial engagement with fintechs, and fintechs have struggled with finding solutions that get them to scale and survive in a more rapid time frame.

Past initiatives to help solve this problem have included shared operating guidelines, modified procurement documents, processes, on-boarding, regulatory sandboxes, investing in fintechs, taking part in accelerators, or just buying them outright.

Budgets, regulatory compliance, security concerns and clashes of culture have been cited as some of the reasons for this uneasy alliance. Is this still a viable approach for incumbents to accelerate their digital transformation – or is there a better solution?