22 januari 2020 • Deventer • 3 minuten lezen
In response to a report of a conversation with the three big banks in the Financieel Dagblad of 18 January last, Alex Timmermans has written an opinion.
From the conversation with the three 'fintech investors' of the major banks (FD 18-1), it is clear how much of a love-hate relationship exists between the traditional banking sector and the fintech world. The fintechs that do not pose as competitors but offer their software to the banks themselves are loved and admired. At the same time, there is mistrust and fear towards the very big US and Asian fintech giants such as Apple, Google, Amazon, Facebook, Alipay and Paytm, which have started to offer financial services on a global scale.
The threat
posed by these fintech giants is one of the biggest concerns for banks. The article argues that banks see trust as their most important asset: millions of honourable customers who provide a strong market position. I fear this is an overly severe overestimation of their own position. Take Apple: market capitalisation 15 times larger than that of ING and ABN AMRO combined; deep pockets with 100 billion cash, a global customer base, a good distribution network and a reliable, customer focused image with a high-favour factor. Apple Pay has gained more than 30 million customers in a very short time in America alone. Is the favour factor on which the banks rely as high as that of Apple or Google?
Yet the battle is far from hopeless. Indeed, banks such as ING, ABN AMRO and Rabobank have at their disposal a unique weapon against which the 'enemy' has no defence, but which is as yet inadequately deployed. The key is found in meaningful, comprehensive financial advice across all asset categories (savings, investment, pension and mortgage) and that takes into account the customer's personal situation. They need simple answers to questions such as: can I still afford the mortgage?Should I invest that inheritance or pay off the mortgage? What is my pension shortfall and what can I do about it?
‘The key is found in meaningful, comprehensive financial advice across all asset categories (savings, investment, pension and mortgage) and that takes into account the customer's personal situation.’
Alex Timmermans Director of Marketing en New Business Pension & Wealth
Fintech giants cannot readily provide the answers to such questions, especially in Europe. Due to complex differences in laws, regulations and taxation, it is therefore difficult for them to compete on all fronts. And besides, the banks are the only parties who have a lot of data from those different banking services, such as savings, mortgage, investment and pension, all over several years. The only hurdle is that those data at the banks cannot really be integrated into a unified customer view right now.
Of course, meaningful customer advice anno 2020 can only be provided in an automated way. But that will only be possible if all "core banking systems" are connected and can deliver the right, standardized data in real time. That sounds simple but no financial institution is that far yet (although some are well on their way). Such a 'connected banking' platform, allows banks to go on the offensive and really add value to their customers.
Focusing on offering integrated advice will ensure that banks no longer have to wait to see which new fintech is next to proclaim that the days of the 'old banks' are really over. Determining that there is no 'level playing field' with the fintechs does not move the banks forward either. Better to go on the offensive on what really matters and that is customer favor. An individual who gains real insight into their financial situation and thereby starts to understand where the pain points around their wealth accumulation lie will then be keen to consider services and products that are advised.
Visit the website of Finance for more information or contact op Alex Timmermans
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