How to Build a Resilient Bank of Tomorrow

How to Build a Resilient Bank of Tomorrow

Snapshot Insights

Snapshot Insights,

European banks are facing massive upheaval from regulations, relentless technology change and disruption from new market entrants. To stay resilient in this increasingly competitive marketplace, banks need to adapt fast. Learn how to do it with the Center for the Future of Work’s new banking framework.

To uncover the current status within the banking sector, Cognizant’s Center for the Future of Work conducted a survey in partnership with Longitude Research, where we spoke to more than 300 senior leaders from European financial services organizations. It revealed that banks risk diminishment, displacement, disintermediation or even the destruction of their business over the next five years.

Is Europe a Digital Superpower or Not?

The survey also showed that:

  • PSD2 and open banking reforms have made new entrants more confident that they can compete with existing banks.
  • The potential for blockchain-enabled fintechs to disintermediate incumbents is an extremely serious threat. 
  • Incumbent banking execs identified that the largest threat (28%) to impact their business over the next three years will come from technology providers such as Amazon, Google, Facebook, etc. Yet the majority of incumbents are continuing with business as usual in the face of this potentially lethal threat.

The findings are presented more thoroughly in the report The New Banking Genome which covers the different threats and suggests a path forward for incumbent banks.

These topics are also covered in an on-demand webinar, where an expert panel try to answer the industry’s most burning questions: What are the opportunities of platform banking? Who will own the customer relationship – fintech, challenger or incumbent banks? Is the way forward about building your own platform or participating on others’?